Warning to landlords over rise of cowboy subletters who list rentals on Facebook Marketplace for profit

A real estate agent was shocked to discover that one of the homes he managed was occupied by six people he had never met before.

Amir Jahan, 25, owner of A-Class Estate Agents, went to inspect the two-bedroom, two-bathroom rental property in Merrylands, West SydneyAfter the landlord was unable to contact the tenant.

When Mr. Jahan arrived to check on the tenant, there was no sign of the tenant – but the house was not deserted.

Instead, six people were living there after reaching a “lease agreement” with the person they thought was the landlord.

It turned out that the tenant was posing as the owner and renting the property for a large profit – something Mr Jahan says happens all the time.

“I tried to do a health check on the tenant and when I got to the property, there were six other people living there,” he told Daily Mail Australia.

Mr. Jahan asked one of the residents where the main tenant was.

“People told me we passed by him, and he’s the owner,” he added.

“I had to tell them, ‘No, it’s the tenant.’”

The real estate agent said his first reaction was to feel sorry for the six people living in the house who had been misled and overpriced.

Now he wants to warn potential tenants about subtenants who rent properties for hundreds of dollars more a week than they pay the landlord.

“The lease was for $450 a week,” Mr. Jahan said. “The tenant listed the property on Facebook Marketplace for $750 a week.”

“The question now is what will happen to the six people?” [living there] Because they were not bound by a contract and were living there illegally.

“It’s not their fault. I’m worried that they’re being evicted, they’re going through the stress of moving and now they need to try to find a place to live.”

Mr Jahan said the shady practice was becoming more widespread as people became increasingly “desperate” to find a place to live.

“When they don’t get approval from real estate agencies, they will try to look for other services to find properties to rent,” he said.

“The main service that’s coming out right now is Facebook Marketplace, which is free for the landlord and free for the tenant.

‘Some people rent the property and then immediately rent it out for more money.’

The agent said his team had been working hard to find alternative accommodation for the six people, all students, but so far only three had found a new tenant.

“Since there was no contract and they were not the main tenants, this was considered an invasion of the property, so we did not have to give them notice to leave,” he said.

But Mr Jahan said the homeowner was a “nice man” and allowed them to stay.

However, the landlord wants to follow the correct legislation and procedures, which includes sending a termination notice to the original tenant, who cannot be found.

“If we do not hear from him after 14 days, his lease will be terminated immediately,” he said.

Mr Jahan said tenants, who have been in the property for at least six months, could sue the subtenant in court – but without a contract, it would be difficult to win.

“They had no papers, no guarantee, no deposit, no contract,” he said.

Mr. Jahan wants tenants to know how important it is to have a contract.

“I know sometimes it’s hard to get approval the right way, but it has to be done the right way,” he said.

Make sure you are renting through the landlord. [if it’s a private agreement] Or you have a contract with the landlord.

“Don’t be blind because you need a place to live.”

The agent said there is a growing trend of people renting out or advertising their homes on Airbnb.

“Some people do it as permanent Airbnb renters who have never lived there, and in other cases renters want to make more money,” he said.

“They could have paid $600 a week in the Parramatta CBD, but they listed it for the weekend and got $600 a night.”

Mr. Jahan stressed that tenants must obtain permission from the landlord before subletting.

“I’ve seen a lot of this over the years, but it’s happening more frequently now,” he said.

“Even when I was working in the rental sector, there was a woman who was renting out an apartment and using it as a brothel with several people working there.”

Click here to resize this unit.