There has been recent media attention surrounding the practice of adjusting the asking price of rentals after they have already been advertised. In a tight market where renters are finding it increasingly difficult to secure a property, there is significant public scrutiny and opinion regarding all aspects of the rental market.

A change in the asking price prior to the accepting of a rental application can happen for many reasons, ranging from unanticipated changes in market conditions impacting on the advertised pricing through to errors or miscommunication between estate agents and rental providers when publishing the initial price. Whilst this is not the same as rent bidding, as it is sometimes reported, it is important for agents and rental providers to recognise that it could be perceived as such and can cause reputational damage to an agency and an owner.

A city agent was recently condemned for increasing an advertised price by $50.00 per week, advising prospective renters that the change was due to ‘an overwhelming response and level of enquiry’.

Under section 30F of the Residential Tenancies Act, rental properties must be advertised at a fixed price, and RRPs and agents cannot request or solicit rental bids. That explained, RRPs and agents can accept a rental bid if it is offered unprompted by a prospective renter. (Reg 16 Estate Agents (Professional Conduct) Regulations 2018).

For Rent: 45 Lawrence Drive, Berwick $480pw

Rental providers and agents must only offer a property for rent at a fixed price. It is unlawful to:

•          advertise a property for rent with a price range, including ‘price plus’ advertising [section 30F(1)]

•          request or solicit bids for rent [section 30F(3)]

If an applicant offers more than the advertised amount the rental provider or their agent must not enter into rent-bidding, by contacting other applicants and telling them a higher amount has been offered or by asking if they are willing to offer a higher amount [section 30F(3)].

If you have further questions or concerns about rental bidding, please feel free to contact the First National Neilson Partners Property Management team who are always happy to assist.