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Rent scam rip-off

08 Feb, 2012 05:00 AM
RUTHLESS landlords are earning up to $2000 a week in rent for a single home by slugging backpackers “obscene amounts” to live in overcrowded quarters, a whistleblower has claimed.

The predatory practice, widespread in the district, sees landlords prey on vulnerable harvest labour workers, many who have just arrived in the country or are working illegally.

In one recent instance, the owner of a two-bedroom Wakaden Street unit was collecting $1200 a week rent by asking 20 Fijian fruitpickers to pay $60 each per week.

“It’s disgusting that people are being forced to live that way and I don’t think many locals realise it’s even going on,” a woman, who works in the harvest labour industry but would only speak on the condition of anonymity, said.

She said private labour contractors often brokered the rental deals themselves, taking a cut fromowners of farm houses.

A well-known local motel was also charging backpackers “exhorbitant money” to live in crowded rooms, she said.

Australian Workers Union south-west organiser Harry Goring said he had shut down a number of the illegal accommodation houses in recent years.

“There was a house on the main street of Hillston late last year that we closed down where a landlord had 26-bunk beds in the house,” Mr Goring said.

“They are taking advantage of vulnerable people but they’re also being opportunistic - where else can you get that sort of rental money for a house?

“At a job I did in Leeton a few years ago, they had 17 in a house and it was organised by a mob in Sydney that promised the backpackers a decent job and decent accommodation.”

Council’s planning and environmental compliance officer Allan Welch, who is charged with investigating illegal accommodation houses, said the most recent fine was issued late last year.

“We had complaints of anti-social behaviour and a home operating as backpacker hostel at a place near the CBD,” Mr Welch said.

“We investigated, fined them $1500, issued an order to cease and told them to make changes to the type of tenant they have there.”

Accommodation manager at Griffith International Backpackers Hostel, Frank Guardala, said the practice was rife in the city.

“You hear about it a lot. They charge the backpackers about $100 a head and get 10 or 15 in a house,” he said.

“Some don’t want to come here because we do everything by the book. We do a visa check and check the work permits.”

Anyone with information about illegal backpacker accommodation should call Griffith City Council on 6962 8100.

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