Victorians still making illegal rental bids despite outlawing practice: Consumer Affairs

A sneaky rental practice outlawed at the start of last year is still causing renters pain across Victoria

Rental bidding is still happening despite being illegal. Picture: Nicki Connolly

Sneaky offers of rental bidding are still taking place across Victorian nearly two years after the practice was outlawed.

The Herald Sun can reveal Consumer Affairs Victoria has probed 44 rental bidding cases since the practice was banned in March 2021.

Rental bidding — a major bug bear of renters – is where a landlord or real estate agent advertise a property with a rental price range, or ask prospective tenants to submit an offer rather of what they would be willing to pay.

Under a raft of changes aimed at strengthen tenants’ rights, property owners and agencies must not advertise to rent properties unless the rent is a fixed amount.

Renters are facing tough conditions across Australia. Picture: Liam Kidston.

Consumer Affairs Victoria said it had been alerted to the ongoing practice by concerned renters, some on whom had been asked by agents or landlords to submit a bid for a property.

“Consumer Affairs Victoria is monitoring Victoria’s new rental laws closely and takes cases of potential rental bidding very seriously,” a spokesperson told the Herald Sun.

“It is an offence for a rental provider or their real estate agent to ask for or invite offers of rent higher than the advertised price.”

Breaches of the state’s rental bidding laws can ultimately result in an $11,000 fine for an individual or a $55,000 fine for a body corporate.

While Consumer Affairs Victoria has probed dozens of cases of rental bidding, the Herald Sun understands no fines have been issued against landlords or agents.

The update from Consumer Affairs Victoria comes as renters across Victoria face high demand and limited properties to move into.

The latest Rental Affordability Index found both Melbourne and regional Victoria had become less affordable for renters over 2022.

Rental affordability in regional Victoria was not at an “historic low” with the Surf Coast and Geelong regions facing an acute crunch, the report shows.

“The trend of declining affordability is consistent across all parts of regional Victoria, albeit at different scales,” the report said.

The index is compiled by economic and planning consultancy SGS Economics on behalf of non-government housing affordability organisation National Shelter.