Agent rapped over rental income guarantees

A real estate agency has provided an undertaking to Consumer Protection over rental income guarantees contained in the advertising of properties for sale in Newman.

Macro Realty Pty Ltd, located in East Victoria Park, and directors Desiree Veronica MacPherson and Renee June Smith have entered into an enforceable undertaking with the department to remove rental income guarantees from advertising.

They have also agreed not to make guarantees in future advertising after it was found that the agency had no reasonable grounds for guaranteeing the properties could be leased at a certain rate.

Consumer Protection acting Commissioner David Hillyard said, without a sound basis, the guarantees were misleading and deceptive.

“To give a guarantee of a certain rate of rental income to a prospective buyer of a property, an agent must have reasonable grounds on which to make that prediction,” he said.

“This action provides a realistic and meaningful outcome that will ensure future advertising is accurate. If the agency breaches the undertaking, the department can take immediate court action.

”Guarantees can be based on the actual rental income that the property attracted within a recent period of time, but must also make a reasonable prediction of future income based on current market trends.”

The undertaking can be viewed here .