Warning to landlords over rise of cowboy subletters who list rentals on Facebook Marketplace for profit
A real estate agent was shocked to discover that one of the homes he managed was occupied by six people he had never met before.
Amir Jahan, 25, owner of A-Class Estate Agents, went to inspect the two-bedroom, two-bathroom rental property in Merrylands, western Sydney, after the landlord was unable to contact the tenant.
When Mr. Jahan arrived to inspect the house and check on the tenants, they were nowhere to be seen. But the house was not deserted.
Instead, six people lived there, having entered into a “lease agreement” with the person they thought was the owner.
It turned out that the tenant was posing as the landlord and subletting the space for a tidy profit. According to Mr Jahan, this happens quite often.
“I tried to check the health of the tenant and when I got to the property there were six other people living there,” he told Daily Mail Australia.
Mr. Jahan asked one of the residents where the main tenant was.
“People said to me, ‘We searched him, he’s the owner,’” he said.
Amir Jahan, 25, (pictured) wants tenants to be wary of illegal properties and has urged them to be vigilant
“I had to tell them, ‘No, he’s the tenant.'”
The realtor said his first reaction was that he felt sorry for the six residents of the house, who had been misled and overcharged.
He now wants to warn potential tenants about cowboy sublandlords who “rent out” their rental properties for hundreds of dollars more per week than they pay the landlord.
“The rent was $450 a week. The tenant had put it on Facebook Marketplace for a weekly rent of $750,” Mr. Jahan said.
The question now is what will happen to the six people [living there] because they had no contract and were living in the country illegally.
“It’s not their fault. I’m worried about them getting kicked out, having the stress of moving and now having to try to find somewhere to live.”
According to Mr Jahan, this shady practice is becoming more common as people become more desperate for a place to live.
“If they don’t get approval from real estate agents, they’ll look for other services to find a rental property,” he said.
“And the main one that’s popping up right now is Facebook Marketplace, which is free for the owner and free for the renter.”
‘Some people rent a home and then immediately sublet it for more money.’
The agent said his team has been working hard to find alternative housing for the six students, but so far only three have new leases.
Mr Jahan (pictured) said he has no problem with private rental properties, but urged potential tenants to always sign a contract and ensure they are dealing with the owner and not a subtenant.
“Because there was no contract and they were not the main tenant, this is considered a break-in to the property and we don’t have to give them notice to vacate,” he said.
But Mr Jahan said the landlord was a “nice guy” and had allowed them to stay.
Nevertheless, the landlord wants to comply with the law and follow the correct procedure, which means sending a termination letter to the original tenant, who cannot be found.
“If we don’t hear from him within 14 days, his lease will be terminated immediately,” he said.
Mr Jahan said the tenants, who had been living in the property for at least six months, could take the sublandlord to court, but without a contract it would be difficult to win the case.
“They had no papers, no deposit, no down payment and no contract,” he said.
Mr. Jahan wants tenants to know how important it is to have a contract.
“I know it’s hard sometimes to get approval the right way, but do it the right way,” he said.
Make sure you rent through the owner [if it’s a private agreement] or whether you have a contract with the owner.
“Don’t be blind because you need a place to live.”
According to the agent, there is a growing trend in subletting or advertising on Airbnb.
“Some are doing it as a full-time Airbnb and have never lived there before, and in other cases, renters are looking to make more money,” he said.
“They could be paying $600 a week rent in the Parramatta CBD, but if they rent the accommodation for the weekend they get $600 a night.”
Mr Jahan stressed that tenants must have the owner’s permission to sublet.
“I’ve seen this so many times over the years, but it’s happening more and more now,” he said.
‘When I was a leasing officer, a woman rented out an apartment and used it as a brothel. Several people worked there.’