Friday 29 August 2014

Are you serious?

A very serious matter has been brought to my attention. A tenant at her wit’s end contacted me with concerns about a tribunal decision. Since I started the blog, I have heard many shockers. This is a prime example of bad treatment, not only by landlords and property managers, but the justice system as well.

Rosalie’s landlord was stealing her electricity. He was tapping into it while building a new unit in the backyard area. Believe it or not, this is a big problem. I have heard complaints of this nature before. Everyone knows the cost of power has gone through the roof. Pensioners are rugging up because they can’t afford to pay their bills. The Grattan Institute has been doing some really interesting work on this subject. In their view, Aussies are paying too much for power. In the last five years, the average bill has risen by about 70%. This has been attributed to the Gillard’s carbon pricing reforms, when really it’s the price-gouging operators. So basically, it’s really important that tenants are charged fairly and accurately for their power consumption.

So Rosalie went to her property manager and complained. The property manager proposed that the bill be split with the landlord. She says to Rosalie, ‘Just give me the bills, I know how to work it out. I do it all the time’. Do they take tenants for fools? Rosalie knows her rights. The Residential Tenancies Act 1997 (Vic) is very clear. In cases like this, the landlord is to take full financial responsibility. There is a very clear policy reason. It is unfair on tenants to pay when their exact power usage can’t be determined. With respect to rented premises, there must be a separate meter. Section 52 states:

A tenant is liable for all charges in respect of the supply or use of electricity, gas or oil in respect of the tenant's occupation of rented premises that are separately metered...

This is what Rosalie has to say:

They have no right asking to look at the bills but they do and I imagine tenants not fully knowing their rights just hand over their private bills. It’s bullying. I spoke to a lot of electrical technicians, AGL, sparkies, engineers, and REIV - they all said that there is no way that anyone can work the bills out or split them accurately, that’s why the owner has to take it over. I didn't hand over my bills; I just wanted the owner to comply with the Act from the day the connection was made.

The plot thickens. Rosalie decided to go to tribunal. The tribunal member tells Rosalie’s landlord to credit her bill. So the landlord has turned around and evicted her.

...when the member at VCAT also tried to work it out I nearly died. So the tribunal member tells the owner to credit me $500 for the first 3 months and then to credit me $100 per month after that until the construction is finished. But get this one - Now I’ve been given notice to vacate - 'owner to renovate' - which means that I won’t get to make good use of the credits. Now the owner is using my power to run a cement mixer because he's putting up the new fence. So now he’s just taking all the power he wants and I feel helpless to do anything about it.

It’s not like he’s living next door, he’s building a bloody house! I am seriously concerned about how VCAT treats tenants. Out of all the states and territories, Victoria is notorious for its treatment of tenants. The President of VCAT agrees that there is a problem. In a 2009 report, he says there are “serious deficiencies” in the accessibility of justice to the Victorian community, particularly tenants. He says:

In the residential tenancies jurisdiction, the tribunal has been very successful in delivering access to justice to landlords, but tenants are not exercising their rights to the same extent. About 95% of applications are initiated by landlords, most of them online. About 80% of those go ahead undefended without the tenant appearing at the hearing.

On our Facebook page, there are tenants, property managers, and some landlords. The tenants say the tribunal is biased in favour of landlords, the landlords say tenants have all the rights. Well, this is a very real and concrete example of unfair treatment. The law is not protecting tenants from exploitation. It’s not only the law; it’s also the way the tribunals and courts deal with matters.

There is this thing called the rule of law. Everyone is supposed to be treated equally. And I don’t think tenants are treated equally. So stay tuned, we will bring you more on this saga. We might even name and shame...

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