AFFORDABLE housing provider Community Housing Limited has been found by Consumer Affairs Victoria to have over-valued the market rent of one of its Bendigo properties.
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Bendigo single parent Greg* took CHL to the fair trading watchdog to dispute its claim that the weekly market rent of the two-bedroom Flora Hill townhouse he leases from the organisation was $332.
Consumer Affairs found in Greg’s favour, ruling that the market rent of the property was $275 per week.
CHL is a not-for-profit organisation which offers discounted rent to low income earners.
It charges up to 80 per cent of the determined market rent of its properties. The percentage of market rent charged is dependent on the client’s income. CHL may charge its clients up to 30 per cent of their income.
Greg said if he were charged rent based on Consumer Affairs’ valuation on the property, he would have up to $55 per week extra in his pocket – a sum which would make a profound difference to the full-time worker.
“It’s a huge amount,” he said.
“Over a month, it’s more than $200. That would pay the electricity or the gas bill for winter. It would pay for half my food bill on a weekly basis. They’re more or less taking away half your food.”
Greg said CHL had upped his rent three times in the 18 months he had lived in the property. Current rental listings for two-bedroom, one-bathroom homes in Flora Hill range in price per week from $185 to $250.
Greg said his main concern was not for himself, but for other CHL clients who may be unknowingly paying too much.
CHL housing services manager Malcolm Douglas said Greg was still paying under the market rent for his home. Mr Douglas previously told the Advertiser rent on the home was higher than other houses in the area as it was less than four years old.
He said the organisation had difficulties meeting with Greg to discuss the matter.
“We’ve tried really hard to meet with the client to sort these issues out but we haven’t been able to make that time with him,” he said.
Mr Douglas said the organisation extended an “open invitation” to Greg to renegotiate his rent.
*Name has been changed as the tenant has started proceedings against CHL in VCAT.
