Village Voice News - Real Estate - Backpackers ripped off

A group of six young backpackers fell prey to a "rogue landlady" who refused to return their bonds for a Coogee property she was illegally subletting to them.

NSW Fair Trading Minister Linda Burney and a local landlord issued a sobering warning to backpackers last week, after details of the scam emerged.

Ms Burney said the six backpackers, who are now in Perth, had each paid a $700 bond up-front and $200 per week rent to live in the three-bedroom apartment in Coogee.

When the travellers moved out, they asked for their bonds back but the bogus landlady refused to pay up.

"It was revealed that the woman who sublet the property to them, known as the head-tenant, had not lodged their bond payments with the Rental Bond Board and also had not sought the permission of the owner to sublet," Ms Burney said.

"This should be a warning to landlords - they need to know if their property is being illegally sublet. They can ascertain this by inspections by themselves or their managing unit."

Alf Licciardello, the actual landlord of the property, said he had first been alerted to his tenant's subletting antics when the neighbours complained.

"The neighbours told the managing agent that the place was full of backpackers, and I also became suspicious when the water usage went up dramatically," he said.

Mr Licciardello said he had since found out the tenant, who had not lived at the property herself, had her own website advertising the rooms for rent and had also leased out another property. It is estimated she was raking in more than $1500 per week.

It is understood the practice of illegally subletting properties is common in backpacker haunts such as Coogee and Bondi.

Andrew Wilson of the NSW Office of Fair Trading said the offender had been served two infringement notices for failing to deposit the bonds with the rental board. She was also fined $500 per notice and ordered to return the bonds to the backpackers - an order with which she complied.

Ms Burney said she would be looking into a review of the Residential Tenancies Act to alter legislation and reiterated the necessity of tenants knowing their rights.