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Sydney units crowding - in the news again

Discussion in 'Property Management' started by Azazel, 22nd Aug, 2015.

  1. Azazel

    Azazel Well-Known Member

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    "The homes had curtain or wood partitions in living spaces to section off extra bedrooms packed with bunk beds.
    The partitions stretch from the floors to just below the ceilings to take advantage of a legal loophole that classifies such walls as “furniture” rather than illegal modifications."

    It's not really a loophole, it's either legal or it's not.

    http://www.dailytelegraph.com.au/ne...493696191?sv=161bf4c00cd385af041a4261b5df6f91
     
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  2. Scott No Mates

    Scott No Mates Well-Known Member

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    In NSW there's no regulations pertaining to the size of rooms or occupancy numbers. Call it a loophole.

    There are walls erected without a DA - illegal.
     
  3. jins13

    jins13 Well-Known Member

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    Sad that in this day and age people still do this to make money off others.
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Just ask all those rich landlords
     
  5. Azazel

    Azazel Well-Known Member

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    As the link above says, not walls, legal. So...
     
  6. Chilliblue

    Chilliblue Well-Known Member

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    So NSW State Government pass new legislation detailing the number of people that can reside in a property and then pass it onto the local councils to manage.

    They did this with pool fencing which would affect similar numbers as overcrowding has.
     
  7. Scott No Mates

    Scott No Mates Well-Known Member

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    And commencement or enforcement of the new pool rulz keeps getting delayed.
     
  8. wylie

    wylie Moderator Staff Member

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    Without re-reading the article (I read it just once), it seems to jump from blaming the landlord to blaming the tenants who sub-lease. I guess the temporary wardrobe with curtain set up is easy enough to dismantle for inspections, but where do the mattresses get put?

    If a PM is indeed doing inspections, I guess they risk losing the management if they report it. Do they turn a blind eye? Do they report it to the owner? If the owner is unaware of how their unit or house is being used, they could take action. If the owner is the one packing people in like sardines, then the PM should report it.

    There was comment that the fines are steep. Now it just needs someone to push a few fines onto people and the fear of being slapped with such a big fine might stop some people.

    I wonder who cops the fine if an owner has no idea their tenant is sub-leasing?
     
  9. Azazel

    Azazel Well-Known Member

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    It's a good point, if there are regular inspections, they should be picking this up.
    I'd be pretty angry with this situation, or the drug house setup mentioned in the other thread.
     
  10. WattleIdo

    WattleIdo renovating Premium Member

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    Would think that strata would have a role to play here. Other residents in the same building should be bringing it up at meetings and writing letters outlining consequences to the landlords.
    When I bought my 2 bedder, I dislidged 10 or 11 people all crammed in there - no subdivisions but different shifts at work etc. This would've affected the water bill not to mention noise levels and parking etc. Executive committee is able to take action. Why aren't they?
     
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  11. Tekoz

    Tekoz Well-Known Member

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    @Azazel Yes, that's normal in Sydney high rise apartment building. It's been happening since God knows when o_O

    If I own the unit in Sydney CBD, I will do it because of the following economical reason:

    1. The tenants mostly Asian students looking for cheap and quick rent, so you don't have to worry about vacancy rate.
    2. The landlord is happy to receive cash in hand for those tenants above.
    3. If the unit is leased through a Property Manager, the inspection date is usually written with at least few days in advance, so they can still hide or place the extra beds on the emergency stairs

    No one is taking this matter seriously hence it is still a normal practice nowadays.
     
  12. Meisterin

    Meisterin Member

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    It's not only students who are using this type of accommodation but many thousands of working holiday people from various parts of Asia who are here to earn money in a short period. They can't rent because they don't have income history and many of them work cash in hand jobs.

    Many of them work as workers of subcontractor's subcontractors and are paid $10-15 hour. Most young cleaners in strata building of Asian(both East and South) appearance are these types and working in Asian restaurants. They work 2-3 jobs to make money to take home and they want to spend as little money as possible on housing. They are not here to enjoy comforts of a home.

    So long as working holiday people are here these type of housing will be in demand.
     
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  13. hotmail

    hotmail Well-Known Member

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    Hi Wylie,

    The landlords who usually do these things often just take cash in hand from the student or new immigrant tenants.

    Generally these types of tenants have no other choice or knowledge of anything better as they have just arrived in the country and it is difficult for them to find a proper legally paying job to survive as they have little English language skills, and also their visa may restrict them from working more than X amount of hours. This means that they require to work in cash in hand jobs to merely survive.

    This also benefits the landlord as he does not have to get the property managers involved, or anyone else for that matter who would cause regulations to be enforced. Because of this they do not have to declare any rental income (no tax), and do not have to pay for any of the usual ongoing costs for a properly managed rental which improves the bottom line ultimately. It is probably likely that a lot of these landlords own the apartments outright and simply use the homes as 'cash cows'

    Overall it is a 'symbiotic relationship' or partnership of landlords who want to maximise cashflow renting to tenants with little other choice it seems
     
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  14. OldElliottE

    OldElliottE Member

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    If you want you can buy the rights to run one of these slums haha. Head tenant was heading back home and put it on Gumtree for $6k. I remember emailing to get details about how they managed it. So dodgy but obvs either an owner or PM who didn't care so he was wanting to sell his business which was the right to be in charge of all of this cash and bond fleecing etc.
     
  15. Azazel

    Azazel Well-Known Member

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    Geeze, doesn't sound like a very safe investment with all of the crackdowns they're doing lately.
     
  16. OldElliottE

    OldElliottE Member

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    Yeah I was being sarcastic. You'd be an idiot to run one of these schemes but I was amused how easy it is to buy a set up one! No limits to the dodgy out there in the world!
     
  17. Tekoz

    Tekoz Well-Known Member

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    Not really, most of the overcrowded apartment in Sydney CBD still going business as usual, no sign of reduction or stopping so far.
     
  18. rhinsor

    rhinsor Well-Known Member

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    I wonder where all these people would live if no one was able to get away with it
     
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  19. Tekoz

    Tekoz Well-Known Member

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    @rhinsor is that also the case in Perth ?
    I've never been there so I cannot comment on it o_O
     
  20. rhinsor

    rhinsor Well-Known Member

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    Lots of properties for rent in Perth at the moment so I don't think they would have a big problem here, maybe a few years ago the issue was the same.