Increased restrictions on rent bidding has seen changes in the way real estate agents and landlords can advertise a residential rental property. Provisions to prohibit solicited rent bidding were introduced in late 2022, however, further restrictions were introduced in late 2023 which directly address who the provisions apply to. The new changes outline that anyone including a real estate agent (or assistant), landlord or digital rental application provider are prohibited from inviting an offer of rent higher than the advertised price for the residential rental property. Previously, rental properties could have been advertised within a price range; however, the new restrictions stipulate that a landlord or agent must include a fixed price on advertisements. The changes aim to incorporate transparency in the renting process, giving tenants a clear understanding of the financial obligations before entering a tenancy agreement.
What this means:
- Rental advertisements cannot include text like ‘offers from’, ‘by negotiation’, ‘price available soon’ or ‘contact agent’
- Signs used on or near the property for rent are not, however, required to advertise the price
- Prospective tenants are still able to offer a higher rental price if they do so voluntarily and freely
- A penalty infringement notice of up to $1,100 may be issued for non-compliance with the new changes