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More problems in Consumer and Business Services

Mar 27, 2012

Mark Goldsworthy MP

Shadow Minister for State/Local Government Relations
Shadow Minister for Veterans’ Affairs
Shadow Minister for Consumer Affairs

More problems in Consumer and Business Services

Mum and Dad investors are being hit hard in their hip-pockets because of significant delays in processing claims for unpaid rent in the Residential Tenancies Tribunal (RTT).

“I have been contacted by real estate agents and property managers who have confirmed that delays at the RTT are causing problems for the industry,” Shadow Consumer Affairs Minister Mark Goldsworthy said.

“Many landlords are Mum and Dad investors who have invested in the property market for their self-funded superannuation.

“But these investors are being hit hard by the inefficiencies of the Weatherill Labor Government and it’s simply not good enough.”

The process to have a matter heard before the RTT when a tenant does not pay their rent used to take two weeks, but this process has now stretched out to five weeks. 

Currently, a tenant must be three weeks in arrears before the application can be lodged, but now, adding five weeks for the RTT to assess the application means a tenant can live in a property for eight weeks without paying rent.

The bond usually covers four weeks of unpaid rent, but that leaves another four weeks of unpaid rent to be borne by the landlord.

“Investors could be left out-of-pocket by approximately $1,200 to $1,500 every time this happens – that’s a significant shortfall on the mortgage repayments on that investment property,” Mr Goldsworthy said.

“The rental market is already extremely tight, and we need people to invest. If investors walk away because of the Weatherill Labor Government’s inefficiencies, it will have a detrimental impact on many people.

“Minister for Business Services and Consumers Rau must now explain why it takes another three weeks to process a rent arrears application and why the services in his Department are failing South Australians.

“Mr Rau also needs to explain what actions are being taken to address these unacceptable delays.

“This is the latest in a long list of examples of a decade of Labor mess.”



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