With the vacancy rate going down to from 1.9% to 1.6% in July, a new report showed that Victoria renters have started offering extra rent to landlords.
According to the Consumer Affairs Victoria’s rental experience report, up to 20% of house seekers have offered to pay more than the advertised rent, with half of them turning out to be successful.
In most instances, the decision to offer higher rent was solely the tenant’s choice.
However, 23% of those surveyed said that the idea was suggested by the agent or landlord.
Tenants have started to feel the housing crunch, as demand continues to remain high in select neighbourhoods with much coveted features.
The practice of rental bidding is not illegal in Victoria, but there is opposition to make it part of the law – one of which came from Yaelle Caspi, the spokeswoman of Tenants Union of Victoria.
According to Caspi, rental bidding does not help low-income tenants because of the lack of transparency around the cost and rental process.
“Queensland has strong protections against rental bidding; we believe the same should be introduced here,” said Caspi in an interview with Domain News.
“Up until recently, the practice of rental bidding was limited to higher amenity properties and to periods of low vacancy rates.
However, we are seeing the process occur more frequently.”
Subscribe & don’t miss a single episode of Michael Yardney’s podcast
Hear Michael & a select panel of guest experts discuss property investment, success & money related topics. Subscribe now, whether you're on an Apple or Android handset.
Need help listening to Michael Yardney’s podcast from your phone or tablet?
We have created easy to follow instructions for you whether you're on iPhone / iPad or an Android device.
Prefer to subscribe via email?
Join Michael Yardney's inner circle of daily subscribers and get into the head of Australia's best property investment advisor and a wide team of leading property researchers and commentators.