Ever turned up to a rental inspection only to realise you’re not just applying, you’re competing? That’s rent bidding in action.
It can feel like a secret auction where the highest offer wins and it’s becoming more common in Australia’s tight rental market.
But what exactly is rent bidding, is it legal and what should renters know before they offer more?
Rent bidding is when prospective tenants offer to pay more than the advertised weekly rent to secure a property.
It’s usually seen in competitive rental markets, especially when demand outweighs supply.
Sometimes renters make higher offers voluntarily. Other times, agents or landlords may hint that upping your offer could help your chances.
And yes, it can be tempting if you're desperate to get a place. But there are things you need to be aware of before putting extra cash on the table.
That depends on where you live.
Some states have banned or restricted rent bidding, especially when agents or landlords actively solicit offers above the listed price.
In those places, it’s illegal for them to:
However, in most states, voluntary rent bidding is still legal. That means if a renter decides on their own to offer more, that’s allowed.
...Even if the agent doesn’t encourage it.
Rent bidding laws vary by state and can change quickly, so it’s best to check the latest rules from your local tenancy authority or Fair Trading website.
The biggest concern is fairness.
Rent bidding can drive up prices, making it harder for many renters to compete. It also creates a lack of transparency.
You may not know what others are offering, so you’re shooting in the dark, unsure of how much is enough (or too much).
It can also increase stress during the rental process. No one wants to feel like they’re being priced out at the last minute after finally finding a suitable place.
If you’re thinking about rent bidding or find yourself in a situation where it’s happening, keep these tips in mind:
Always check the laws in your state or territory. You have a right to fair treatment during the rental process.
If you feel pressured, report it to your local consumer affairs body.
It’s easy to get caught up in the race, but don’t offer more than you can comfortably afford.
Keep in mind that rental agreements usually last at least 6 or 12 months, and once you agree to a higher amount, you’ll be locked into that rent.
If an agent hints that others are offering more, ask if rent bidding is being used and whether it’s being solicited.
If that’s illegal in your area, you’re within your rights to call it out.
If you do choose to offer more, make sure all communication is documented (ideally via email).
This protects you if there are disputes down the track about what was agreed.
You’re allowed to walk away.
If a property slips through because you chose not to enter a bidding war, that’s okay. Your budget and peace of mind matter more.
Many renters and advocacy groups argue that banning rent bidding levels the playing field.
It encourages transparent pricing and ensures agents can’t exploit competition to drive up rent.
Some states have already taken steps in this direction, with tighter controls on advertising and clearer rules around rental offers.
But enforcement remains a challenge.
Until uniform rules are adopted nationwide, renters will need to stay informed and empowered to protect themselves during the application process.
Whether you’re facing a competitive rental market or just want to prepare, here’s a quick checklist:
You might also like:
> Rent hacking: Negotiate your way to cheaper rent today
> Six finance tips every renter needs to know
> Getting the most bang for buck from RentPay
