A Sublet Agreement Gone Wrong
Katie, a young woman living in Hobart, found herself in a difficult situation when she signed a "residential sublet agreement" with a company called Arx Pty Ltd.
The agreement seemed promising at first. Katie would have her own room in a shared house, could bring her cat, and live with five other housemates. However, upon closer inspection, the agreement contained several concerning clauses, including a non-disclosure agreement that prevented Katie from communicating with Arx's clients.
As Katie and her housemates began living in the property, they noticed several issues. Some housemates had vulnerabilities, and Arx, who acted as the moderator of the house's WhatsApp group, would remove comments about these issues. One housemate who complained about a leaking ceiling was even removed from the group.
Concerned about Arx's practices, Katie and another housemate sought legal advice. They were informed that the "sublet agreement" was likely invalid under Tasmanian law, as Arx, a company, was not occupying the premises as required by the Residential Tenancy Act. This meant that Katie and her housemates had no tenancy rights and no recourse through the regulator.
Determined to seek justice, Katie and her housemate plan to go to court to attempt to have their rent returned. They believe that Arx is taking advantage of the difficult rental market in Tasmania, particularly for single people.
Arx, in response to the ABC's inquiries, stated that they have made submissions to the regulator about their compliance with Tasmanian subletting provisions and are committed to upholding legal and ethical standards. They also clarified that they have not evicted any subtenants and that the WhatsApp group is used to facilitate support and maintenance requests.
The Tasmanian government has been aware of the lack of regulations for subtenants for some time and has promised to review the Residential Tenancy Act to address this issue. However, the review is not expected to be completed until mid-2027, leaving subtenants like Katie in a vulnerable position.
This story highlights the importance of carefully reviewing rental agreements and understanding your rights as a tenant. It also underscores the need for stronger regulations to protect subtenants in Tasmania.