How Aussie real estate agents are illegally encouraging rental bidding wars – making it even harder to get a rental
Tenants desperate to buy a home claim they have been continually squeezed out of the market by 'bidding', despite being banned by law.
Last year, the New South Wales government banned real estate agents from inviting potential tenants to bid on rental properties in response to the state's housing crisis.
This move was followed by a further crackdown in June this year, preventing third parties and landlords from encouraging people to submit higher weekly rental offers to get ahead of other potential tenants.
Under the new rules, agents and landlords must advertise a fixed rental rate for all properties.
However, Tenants' Union NSW claims adjusters are still putting 'significant pressure' on tenants to offer more than the advertised rent.
The Tenants Union NSW alleges agents across the state are illegally enticing potential tenants to participate in rent wars
“This pressure is exerted in a number of ways, including unfortunately the continued behavior of some agents and landlords in 'asking' in breach of regulations,” Jemima Mowbray, the union's policy and advocacy manager, told me. Nine news.
'Tenants report feeling conflicted; they can't necessarily afford higher rent and feel like they've wasted their time when it becomes clear they've missed out on someone who offered more.”
NSW Fair Trading confirmed it has issued agents worth $26,950 in fines for breaching advertising restrictions following a 'rental bid compliance campaign'.
Three agents are currently under investigation for allegedly encouraging potential tenants to offer more than the advertised weekly rent.
It is understood NSW Fair Trading began enforcing the new rules in March with 51 fine notices worth $54,450 for related offences.
The watchdog also monitors private advertising platforms, such as Gumtree, to ensure landlords follow advertising requirements.
NSW Rentals Commissioner Trina Jones said she has joined the team monitoring landlords and agents across the state.
NSW Fair Trading has fined agents a total of $26,950 for encouraging tenants to pay more than the advertised weekly rent
“This includes a dedicated compliance campaign with more than 250 inspections resulting in 76 penalty infringement notices,” she said.
“I would strongly encourage anyone who witnesses agents asking for offers to contact Fair Trading so we can continue our work to ensure renting is fair in NSW.”
The maximum penalty for violating the new laws is a fine of $5,500 for an individual and $11,000 in all other cases.