The rental market in Australia is under the microscope again, and young people are coming up with innovative ways to deal with the increased living costs and travelling at the same time.
To cover their rents during the holiday season, more and more Gen Z landlords are posting their short-term sublets on social media. The new tenant loophole in Australia is created, thus bringing rents, landlords, and legal experts fighting over the issue, and ending up worrying about the little man’s rights.
Young Australians’ travel hacks have become prevailing factors in turning the way renters behave financially amid continuing inflation pressures and high housing costs in the major cities.
Why Are Young Australians Travel Hacks Gaining Momentum?
Cost pressures are still squeezing household budgets, and this is forcing many renters to look for flexible income solutions while keeping their lifestyle plans.
Young Australians’ travel hacks are increasingly focused on making money through rental space that is not being used during travel periods, thus allowing the tenants to offset the rent without breaking the lease. The online postings provide evidence of this, as the rooms are advertised for just a few days, and they come with furnished accommodation and the bills paid.
In Lilyfield, a suburb of Sydney, one room was offered for $550 a week, and the rent was inclusive of the bond, which is one week’s rent, for the period of January 11th to 25th and February 2nd to 15th.
In another Newtown listing, the asking price was $550 for the dates between January 28 and February 10. Bondi has also listings for $450 per week shared with another tenant. These figures indicate that millennials are becoming smarter renters by turning their fixed housing costs into temporary revenue streams.
 
Social media groups now drive short-term sublet demand among younger renters. [LinkedIn]
Short-Term Subletting Drives The Rental Loophole Australia Trend
Australia’s rental loophole approach enables lessors to post short-term stays without actually ending their lease agreements. Most of the posts talk about completely furnished rooms, work-from-home setups, Netflix access, and different date ranges.
Some of these arrangements are for only two weeks, which leads to worries about tenant screenings, privacy, and personal safety. Opponents say that informal subletting makes renters vulnerable to property damage, theft, and disputes with no protection under contracts.
Although it is difficult, the experts still say that informal agreements make it hard to determine who is liable for what and thus increase the risk for both the landlord and the tenant.
Short-term sublet listings now mirror hotel-style amenities in urban suburbs. [News.com]
Is The Rental Loophole Australia Legal Across States?
In most cases, subletting is allowed in Australia, but landlords’ written approval is still required in most states before any tenant arrangement is made. In New South Wales, landlords signing the permits are compulsory for all subordinates.
Landlords may refuse complete property transfers but cannot deny partial subletting unreasonably. Similar regulations are in place in Victoria, South Australia, and Western Australia. In Queensland, tenants must have written approval from the property manager or owner, and any bond must be lodged with the Residential Tenancies Authority.
ACT tenants also have to get written consent, or the agreements may not be enforceable. Tasmanian tenants can only sublet if they are still inhabiting the property. Legal practitioners warn that breaching lease terms could lead to eviction or forfeiture of the rent paid.
Social Media Backlash Highlights Growing Trust Concerns
The public’s reaction has not been uniform, as some people on social media express their doubts concerning the decision to give strangers access to private spaces.
DJ Kayla Bruno was one of the people who did not like the idea and was vocal about it on social media, encouraging renters to pay rent instead of subletting for a few days.
Several users have voiced their worries about having their personal items, privacy, and the area being misused during the rental period. while some other users offered the house-sitting option as a solution that is not only safe but also protects pets and personal belongings.
DJ Kayla Bruno criticised subletting, urging renters to simply pay rent instead. [Sound Cloud]
How Millennials Are Renting Smarter In A Tight Market
People who support the trend believe that these travel hacks of the young Australians are a sign of their financial survival in a tough rental market. The use of flexible income strategies allows renters to be able to travel without being a debtor.
But noncompliance is still a major issue as it invites penalties. Legal consultant Stefan Psaltis cautioned that the act of unauthorised subletting could contravene the code of conduct, thus making individuals liable for a fine of $2000 and companies for $20,000.
Moreover, renting through private social media channels exposes the renters to all the risks involved, and so their legal protection is limited. The dispute over the rental loophole in Australia is bound to escalate as the issue of rental affordability continues to linger.
Also Read: ATO Intensifies Rental Property Crackdown with Bond Data Collection
FAQs
Q1: What are young Australians’ travel hacks in renting?
A1: Young Australians’ travel hacks involve subletting rooms on a short-term basis to cover rent while travelling overseas.
Q2: Is the rental loopholein Australia legal?
A2: Subletting is legal with written landlord consent in most states.
Q3: How are you renting smarter using sublets?
A3: Millennials offset fixed rent costs by monetising unused space temporarily.
Q4: What risks exist with short-term subletting?
A4: Risks include property damage, legal penalties, privacy concerns, and lease breaches.
