It’s a process that has been addressed in state tenancy reforms across the country over the past few years, with New South Wales soon to consider banning the practice all together.
Rental bidding is like the auction process, where prospective tenants will put forward a proposed figure to secure a property.
Encouragement of rental bidding is already banned in Queensland, Tasmania and Victoria, with New South Wales the latest state to put forward proposals to have the practice disallowed.
In Queensland, properties must be advertised with a fixed price, making it very clear how much the rent for a property will be. This helps landlords and property managers to avoid unintended rent bidding, which a rental range (e.g. $300-$500) or advertising without any amount specified may give rise to.
Landlords are able to agree to accept higher offers, where a tenant makes the offer voluntarily and accept a prospective tenant’s offer to pay rent in advance. It is not acceptable for property managers or landlords to solicit higher offers or invite rental bids.
Victoria and Tasmania follow similar legislation.
Currently, ahead of the 2023 New South Wales state election, there are calls for reform into the practice of advertising rental properties without a ‘fixed’ rate. Proposed changes will see the practice of asking or suggesting renters bid higher than listing price banned. Renters will still be able to voluntarily offer more.
The needs of our landlords and the challenges you may face are front-of-mind. We fully understand that this is a challenging market for tenants. Because they are under increasing pressure, it’s not uncommon to have multiple offers from tenants hoping to secure a property.
Being clear and upfront about a property’s rental price helps prospective tenants secure housing in a fair way, giving them greater security and certainty so they can plan ahead.
You can be confident that rental applicants are not assessed on their dollar offer alone. We are committed to ensuring full applications are received and proper background checks are undertaken, putting only the most suitable candidates forward for a landlord’s consideration.
We pride ourselves on our service to both our landlords and tenants and our lines of communication are always open and we do what we can to support anyone facing housing challenges with compassion.
Note: If unsure about your state’s stance on fixed rent rates or rental bidding, ask your property manager.
