Rental bidding is where tenants offer to pay more than the advertised rent. It is not illegal in Victoria. However, there are stories of landlords and property managers encouraging people to offer more than the reported rent to secure a home.
Rental bidding encourages potential tenants to put their lives on the line to get a roof over their heads.
Tenants are forced to squeeze their budget as tight as possible with high bids for rentals, or risk losing out on their potential home. This squeeze leaves no room in tenants’ budgets for savings, for changes in income, or for medical emergencies.
Rental bidding drives up prices. It creates additional barriers to housing for low-income tenants by pricing them out of the market.
Rental bidding reduces transparency around the cost and process of renting.
It’s a blind auction in which no one but the landlord knows the winning price.
- Team Ellen