[2025] SACAT 71
General information, not legal advice.
SA Civil and Administrative Tribunal
2025-08-20
Mr P
Original judgment source is linked above.
Coscia Investment Pty Ltd v Reese [2025] SACAT 71
The applicant landlord sought internal review of the Tribunal's declaration that the rent payable under a residential tenancy agreement is excessive pursuant to s 56 of the Residential Tenancies Act 1995. The Tribunal determined that a 63.04% increase in rent from $230 to $375 was excessive and fixed the rent payable at $300 per week.
The landlord submitted that the original decision was neither correct nor preferable. The landlord's agent informed the Tribunal that it had received advice from a licensed valuer that market rent was $375 per week. The agent provided further evidence on internal review regarding the rent charged for sixteen comparative properties. The agent also told the Tribunal that the rent has been increased to $375 for other tenants in the complex where the property was located and that the other tenants had accepted this increase. Lastly, the agent submitted that the tenant does not pay for water use or charges and that his rent had only increased by $40 a week over seven years, whereas rent has generally increased in Adelaide by 10.5% since September 2023, and 24% since 2020.
The respondent tenant submitted that the appropriate rent was $275 per week. He told the Tribunal that the property is a bedsit and therefore, the properties provided by the landlord were not comparable. He argued that the fact that all of the premises were rented at the increased price was of no relevance, and that his rent should not be calculated on the basis of the requirements of the landlord's mortgage.
Held, setting aside and substituting the order under review:
Internal Review - Residential Tenancy - Tenant application - Excessive Rent - Disproportionate
Re AKS [2016] SACAT 19
Ms G D'Andre and Ms M Alexandrou, I-Manage Property Investments, in person
Mr P Coscia and Mr D Coscia, Coscia Investment Pty Ltd, in person
Issue 1: Should leave be granted for the internal review application?
...the Tribunal should take the same approach to the exercise of its discretion to grant permission for an internal review as is taken by the Supreme Court when it decides whether or not to grant permission for a civil appeal. The overriding principle is always the interests of justice. The ordinary approach is that permission will only be granted where an appeal is reasonably arguable and the subject matter is of sufficient substance to justify consideration. A failure of the first instance decision-maker to give adequate reasons will require permission to be given.
Issue 2: Should the previous decision be affirmed, varied or set aside?
(a) it must examine the initial decision in light of the evidence or material before the Tribunal at the time that decision was made;
(b) it may, as it thinks fit, allow further evidence or material to be presented to it;
(c) it must reach the correct or preferable decision; and
(d) it must have regard to, and give appropriate weight to, the decision of the Tribunal at first instance.
(a) It comprises a "bed sit", as a single room divided by a large cupboard, with a bedroom area, a kitchen and a combined living/dining area. There is a separate bathroom. There is no door between the living area, the kitchen, and the bedroom.
(b) The bathroom has a shower, toilet and basin, and fittings for a washing machine. There is also access to two coin operated washing machines elsewhere on site.
(c) The floor space of the whole of the premises is 36 square meters (36m2)
(d) The premises forms part of a complex of 24 units, which are all occupied. All units are of the same plan and size. Some of the units have been renovated, but not the subject unit.
(e) Split system air conditioner
(f) Oven with two top hot plates
(g) No on-site parking
(a) The recently rented premises in the complex, all rented at $375 per week: 36m2; "bed sit" premises; equipped kitchenette; separated bedroom/living area, but no door between them; separate bathroom with space and connections for laundry facilities; split system air conditioner; on street parking; all renovated or to be renovated
(b) Karoomba Avenue Greenacres: $375 per week; 35m2; bedsit/studio units with kitchen, but shared laundry facility; no on-site parking; no separation of bedroom/living and kitchen area
(c) Hender Avenue Klemzig: $400 per week (2025); one bedroom; no yard; no parking; unrenovated, built 1972
(d) Collins Street Enfield: $225 per week (2019); 48m2; upstairs; no yard, no parking
(e) Collins Street Enfield: $380 per week (2024); 48m2; renovated; separate bedroom; upstairs unit; overhead fans; no yard, no parking; shared laundry
(f) Nelson Road Valley View: $370 per week; 46m2
(g) Student accommodation Kent Town: $320 per week; one bedroom with double bed and bar fridge; separate bathroom; access to kitchen and common room with TV, laundry and outdoor facilities. This is in a former motel.
(h) William Street Norwood: $470 per week; 38m2; separate bedroom; kitchen/living area; separate bathroom; upgraded; on street parking
(i) Lindsay Avenue Valley View: $490 per week; one bedroom unit; no parking; open kitchen/living area
(j) Payneham Road Glynde: $400 per week; parking with roller door; bathroom with bath.
The agent also provided some details of other one bedroom premises, all rented around $350 - 400 per week. In addition, the following were referred to:
(a) the general level of rents for comparable premises in the same or similar localities; and
(b) the estimated capital value of the premises at the date of application; and
(c) the outgoings for which the landlord is liable under the agreement; and
(d) the estimated cost of the services provided by the landlord and the tenant under the agreement; and
(e) the nature and value of the furniture, equipment and other personal property provided by the landlord for the tenant's use; and
(f) the state of repair and general condition of the premises; and
(fa) the estimated cost of goods and services provided under any domestic services agreement collateral to the residential tenancy agreement; and
(fb) if the rent was purportedly increased under s 55(2a) - whether the tenant was put under undue pressure to agree to the increases; and
(fc) without limiting paragraph (fb), if the rent has been increased - whether the increase was disproportionate considering the amount of rent payable; and
(g) other relevant matters.
If the Tribunal finds ... that the rent payable under a residential tenancy agreement is excessive, the Tribunal may -
(a) fix the rent payable for the premises and vary the agreement by reducing the rent payable under the agreement accordingly; and
(b) fix a date (which cannot be before the date of the application) from which the variation takes effect; and
(c) fix a period (which cannot exceed one year) for which the order is to remain in force.
"The general level of rents for comparable premises in the same or similar localities" - s 56(2)(a)
(a) The recently rented premises in the complex, all rented at $375 per week. These are identical to Mr Reese' premises, other than that some have been renovated, and the evidence is that all the other premises, whether renovated or not, are rented out at $375 per week, with a waiting list and significant interest in the availability of the premises at that rent.
(b) Karoomba Avenue Greenacres: $375 per week. These premises are slightly smaller, at 35m2, with only a shared laundry facility, but otherwise very similar, as a "bedsit/studio".
(c) Hender Avenue Klemzig: $400 per week. These premises have a separate bedroom, the overall size is not known.
the proposed rent of $375 per week for these premises is not excessive, and shall apply in respect of these premises from 28 days after the date of this order.
Coscia Investment Pty Ltd
Reese [2025] SACAT 71