Ray White Bondi emails landlords suggesting they evict tenants to raise rent

A real estate agency emailed landlords telling them they could kick long-term tenants out of their homes so they could up the rent amid Sydney’s disastrous housing crisis.

Ray White Bondi, in the city’s eastern suburbs, told property owners it was reasonable they’d want to ‘maximise’ the ‘once-in-a-decade’ rental crisis.

The agency gave three options, with the first ‘aggressive’ approach being to kick out the tenant, clean up the property and re-list it at a higher rate.

‘This will achieve the maximum increase possible in the shortest time,’ the email says, the ABC reported.

Another ‘proactive’ option would be to raise the rent by 5 to 10 per cent, while the agency also said landlords could leave the price as it is.

Landlords in NSW can evict tenants without any grounds with 30 days notice at the end of a fixed-term agreement.

Ron Bauer, the Principal of Ray White Bondi Beach, told Daily Mail Australia the email ‘outlines a choice of paths our clients can choose to take in the current market’.

‘We represent a wide array of clients with varying needs, we are here to represent their needs as best as we can,’ he said.

He said while he sympathised with tenants, he was an advocate for landlords.

‘The landlords had it tough with Covid but now they have it tough with high interest rates,’ Mr Bauer said. 

The email comes after Meriton – one of Australia’s largest developers – encouraged its leasing and building management team to ‘push rents as hard as possible’ due to the rental market being more competitive than ever.

‘As you are aware, the market is on fire and vacancy extremely low, so please ensure you’re pushing rents as hard as possible,’ Meriton’s email read. 

The Meriton boss reminded staff international students were coming back – meaning vacancy rates would get even tighter across Australia’s major cities.

‘Students are arriving and we will see record numbers,’ the email read.

‘For HOT/family units, please ensure you push above targets, especially if you have nothing available and doing six-month leases.’

Sydneysiders have struggled to find a place to rent with huge queues seen stretching down the street at house inspections

Keeping leases to six months helps landlords and real estate agencies rise rents more regularly because rent raises are typically not allowed during a lease period.

‘I recommend starting with a six-month lease, as this gives you the opportunity to increase the rent sooner in a rising market,’ the email read.

The email ended by reminding staff to ‘ensure you’re doing your rent reviews now whilst the market is hot’.

In a statement to Daily Mail Australia, a Meriton spokesperson said the rent increases had ‘nothing to do with greed or Meriton apartments would not be at capacity’.  

‘Meriton manages 4250 properties on behalf of landlords and part of that service is to ensure landlords achieve ‘market rent’ for their property,’ the spokesperson said.

‘The rents are no greater than they were before Covid and of course the costs have gone up. 

‘Recent inflationary pressures have also impacted rent values but this seems to be exacerbated more so in Sydney where there is a chronic undersupply of apartments. Meriton is working hard with local and state governments to fast track approvals to deliver the much needed housing NSW needs.’ 

Ray White Bondi has been approached for comment.