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General News

9 October, 2023

Rent rise causes concern for Isabella Warton Place residents

Maryborough residents living in affordable housing at Isabella Warton Place say they are concerned their rent could more than double by the end of the year, as new owner of the units Asteria Services looks to increase payments to maintain...

By Riley Upton

Rent rise causes concern for Isabella Warton Place residents - feature photo

Maryborough residents living in affordable housing at Isabella Warton Place say they are concerned their rent could more than double by the end of the year, as new owner of the units Asteria Services looks to increase payments to maintain “viability” of the units.

Letters seen by The Advertiser that were sent to residents by Asteria in late September outline varying increases to existing rent amounts, with some set to more than double by December 18.

The letters state the rental increases are required to “ensure the viability of Isabella Warton Place”, further stating the current payments are “insufficient” to meet this end.

Ownership of the 26 units known as Isabella Warton Place, which was established by the Maryborough Benevolent Society to provide affordable and secure housing for residents in need, was handed to not-for-profit disability organisation Asteria in July this year after the Benevolent Society folded after 154 years.

It was communicated to residents (and The Advertiser reported) at the time that Asteria would provide a continuity of service, noting rent increases would be implemented at a later date, with residents raising concerns about the security of their rental agreements at the time.

One resident, who has lived in a unit for six years and asked to remain anonymous, said the changes will see their rent increase by over $100 per week.

“It came as a surprise when suddenly it was communicated from Asteria that to keep the place going, we have to have a sizeable increase to our rent,” they said.

“It had never been communicated to us that the place was under financial stress — verbally it was communicated that there would be a modest increase, but this is not modest.

“I think it’s morally wrong. Not everybody here is doing well and this will impose a significant budget problem for many of us.”

The rent increase, according to Asteria, is based on the open rental market and includes garden maintenance and water usage.

The resident, along with several others, have applied to the Director of Consumer Affairs Victoria to review the proposed increase and are within their rights to take the matter to the Victorian Civil and Administrative Tribunal (VCAT).

The residents said they have also contacted the Central Goldfields Shire Council and the local Member for Ripon to express their concerns.

A comparative market analysis undertaken by Barry Plant appraised the resident’s unit at up to $290 per week, however the analysis is based on two-bedroom units, and the resident’s is a single bedroom which they say is unfair.

“It’s just unfortunate this has had to happen, I was expecting an increase of maybe $10 or $20 like there has been in the past, nothing like this,” they said.

“Garden maintenance was already included in the existing rent agreement and even with water usage included, it works out at around a 70 percent increase to my weekly rent.

“I love it here, as a community we’re very supportive of each other and I would hate to have to leave.”

In a statement, Asteria Services CEO Annie Constable said the organisation remained committed to providing affordable housing.

“Residents of Isabella Warton Place were informed in July 2023 that a rent increase would be issued in due course,” she said.

“Asteria acknowledges the importance of the need to provide affordable housing and are determined to continue to build on the existing infrastructure to meet the growing demand as per our current wait list.

“Updates to residents have been, and continue to be, communicated to all residents.”

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