Sunday, 29 May 2016

Unstable landlord from Torrensville: Centrelink being defrauded

This is a story about an unstable landlord from Torrensville who uses his tenants to defraud Centrelink. The landlord in this instance cannot be named because the tenant fears further harassment and retribution.

The landlord never gave rent receipts to his tenants because his didn’t want Centrelink to find out about the extra income. If there were a database of rental properties, the agency would be able to link in and check these things.

This is what the tenant had to say: 

 
I am in Adelaide and currently having an issue with an ex-landlord in Torrensville who is taking me to court about bond he claims I need to pay him back for - he never lodged the bond with anyone.
 
This was a lodging arrangement (6 years tenancy) and he never gave me rent receipts and is attempting to claim money back for various ridiculous items including doing improvements and repairs on his own property. Incidentally, there was never a written lease, just a verbal agreement.
 
At present it is a monumental waste of my time (I will have my third court directions hearing in Feb) but I concede I have learned a significant amount about the legal process and the depths that some people will stoop for money. This guy is an invalid pensioner and has tenants in his house that he doesn't declare to Centrelink (hence he also doesn't provide receipts). It is surprising that he would make himself open to scrutiny in this way, but I suspect his comeuppance is about to occur. 
 
The landlord failed in his duty to provide receipts for rent for the entire period of tenancy (as is stipulated by Section 58 of the Residential Tenancy Act). He insisted that all rent be paid in cash and did not allow me to pay by cheque or deposit as he did not want Centrelink to be able to trace his income.
 
The interesting thing is that the tenant was successful in arguing that section 58
of the Residential Tenancies Act 1995 (SA) was breached. In most states and territories, tenants have a right to rent receipts to prove they paid if the landlord claims they did not. Pretty common sense. It’s there to protect tenants.

But strictly speaking, if the judge had found that the tenant had boarded with the landlord and had not entered into a lease she would not have won. Under section 5(b) of the Act, boarding and lodging arrangements are not covered by the Act.

Accordingly, people in this situation do not have the protection of the Act including the right to rental receipts. And there is no reason in principle why boarders and lodgers should not be entitled to rental receipts. This is very bad law.  
 
Also note that landlords can be fined a maximum of $2,500 for failing to provide rent receipts in South Australia. I would really like to know what is going on because I have not heard of any landlord getting a fine of this magnitude.

The tenant also explained how the landlord made his tenants pay for electricity as a way of hiding income. She continues:
 
The plaintiff’s initial claim for $1200 for rent in arrears on the 16/12/12 (and again on 7/1/13) was paid by the defendant on 22/1/13 (minus bond) with no mention of other monies owing (including electricity and withholding of bond) until 21/8/13.
 
Without explanation, the amount ‘owed’ for electricity has risen from $150 in the original claim to $188 in the most recent claim. The plaintiff obliges his tenants to pay the entire electricity bill without contributing monies himself as a way of hiding income and avoiding the loss of benefits from Centrelink.
 
Although never formally agreeing to comply, and at times spending little time at the residence, the defendant estimates over $5000 was paid in electricity during her six-year tenancy and is reluctant to contribute further.
 
The defendant spent very little time in the residence in the three month period of the bill in question, with ten days spent in China in late November and days spent away from the residence due to fear of the plaintiff from early December.

This is blatantly unfair. Tenants are being exploited because they need somewhere to live.

In the next instalment, we will explore how this landlord threatened and intimidated his tenants.




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