Consumer Affairs Victoria: Court outcome for agency that threatened to interfere with tenants' legal access to their homes
12 September 2022
Consumer Affairs Victoria (CAV) has published a court outcome notice on their website today, advising that an estate agency has been convicted and fined in the Melbourne Magistrates’ Court. The conviction and disciplinary action are the result of the estate agency’s threats to deny three international students legal access to their rental properties at the beginning of the COVID-19 pandemic.
CAV reports on the issue as follows:
Waterdale Estate Agents – Court outcome
West Melbourne-based Waterdale Property Agent Pty Ltd (ACN 121 837 581), trading as Waterdale Estate Agents, was convicted of breaching laws introduced to protect vulnerable renters during the first coronavirus wave.
The court heard that in April 2020, Waterdale had cancelled two students’ access to their West Melbourne apartment building. One student was only able to access the building with the help of another tenant, and remained in her apartment all weekend, out of fear she may be locked out again.
The agency also threatened to deny access to the other renters if they didn’t attend its office, although Waterdale claimed that the threat was only made as a means of getting the renters’ attention.
At the conclusion of a contested hearing, Waterdale was found guilty, convicted and fined $5000 for making a false and fraudulent misrepresentation to its renters by serving a Notice to Vacate in breach of the COVID-19 renting laws.
The company was also convicted and fined an aggregate sum of $2000 for multiple breaches of the Estate Agent Professional Conduct Regulations, including behaviour which had the potential to bring the industry into disrepute, and failing to perform its duties as an agent with due care and skill. It was also ordered to pay $5000 legal costs.
Consumer Affairs Victoria took action after complaints about Waterdale’s conduct at the start of the pandemic.
Under Regulation 13 of the Estate Agents (Professional Conduct) Regulations 2018:
(1) An estate agent or an agent's representative must exercise all due skill, care and diligence in performing the functions of an estate agent or an agent's representative (as the case requires).
(2) An estate agent or an agent's representative must not engage in conduct that is unprofessional or detrimental to the reputation or interests of the estate agency industry.
Director Nicole Rich said the temporary changes to the Residential Tenancies Act 1997 were put in place to protect vulnerable renters during an unprecedented time of insecurity and uncertainty.
“Everyone has the right to feel secure in their rental property, especially during the COVID-19 pandemic,” she said.
“These renters were particularly vulnerable as international students far from home and families at the start of the pandemic. The threat of being locked out or evicted from their homes must have been very frightening.”
“This sort of conduct does not align with the care, diligence and fairness expected of estate agencies and is a disservice to those who do the right thing.”
For further information about the rights and obligations of renters and rental providers, see consumer.vic.gov.au/housing/renting.