Drew is one of many Aussie renters who feel forced to offer more money just to find a place to live. (Source: LinkedIn/Yahoo)
Australians are going above and beyond to try and secure a roof over their heads. New research has revealed many renters are offering more money than what's advertised to push their application to the top of the pile.
The Real Property Report 2025 found one in seven Aussies have added an extra $125 per week or more in the hope that that will get them across the line. Melbourne renter Drew Baker told Yahoo Finance that it felt impossible to get a place without offering more money.
"We had quite strict budgets that we established ourselves, but that went up massively...it was incredibly frustrating," he said.
"The financial stress of potentially having to pay more for something I didn't absolutely love just to secure a house was quite annoying."
The 29-year-old retail worker sent out more than 100 applications since December to find a place with two friends and kept getting knocked back.
He had originally set a budget of $250 per week, however, he had to increase that to $300 per week to stay competitive in the suburbs he was looking at.
He worried that not only was the spate of rejections due to them being limited in what they could offer but also because realtors thought the three men would turn any rental into a "party house".
The property report research found that close to half (46 per cent) of rental applicants usually offer between $25 to $74 extra per week, while a quarter of respondents chuck $75 to $124 on top of the advertised price.
That means people are forking out an additional $1,300 to $6,500 in rent every year just to edge out their competitors.
Do you have a rental story? Email stew.perrie@yahooinc.com
Calls to end the practice of rent bidding
Every Aussie state and territory has outlawed rent bidding, which is when a real estate agent or landlord encourages applicants to offer more money for a property.
But that doesn't stop prospective tenants from doing it themselves and agents in most jurisdictions aren't banned from accepting higher offers.
Whether they're in a time crunch to find a new place to live, or they're just battling against record-low vacancy levels in some areas, people feel they can't get by without inflating their offers.
But offering more money upfront doesn't stop you from getting another rental increase when your contract expires in six, 12 or 24 months.
Better Renting executive director Joel Dignam told Yahoo Finance that some real estate agents will deliberately advertise a low-ball price for a home in the hope that people will offer more.
He's also seen properties pulled from advertising and re-uploaded at a higher price after getting offers above what was posted.
He said the system needs to be tightened further to stamp out rent bidding altogether.
"It creates a very non-transparent market and renters end up wasting a lot of time going to inspections that were never actually in their price range," he said.
The Real Property Report revealed that renters are spending on average eight hours per week on their search for a home, which increases to 9.2 hours for pet owners.
Baker told Yahoo Finance that sometimes it feels like a "full-time job" trying to find a rental because you have to not only make individualised applications, but also attend inspections, and follow up with real estate agents.
Outlawing rent bidding could see rental prices jump
Dignam warned that if rent bidding was truly outlawed, rent prices would likely increase as a result, but he called that a "net positive" in the grand scheme of things.
"While it might mean that the advertised price is higher, it actually means a much more honest market and people don't have to waste their time, take time off work, or miss a shift to go to an inspection," he said.
He would love to see renters across the country band together and commit to not offering more money.
He knows that’s unlikely to happen.
"Unless we have a radically different rental system, renters will be competing with other renters to get the property, and landlords and agents are going to make decisions on who gets this property," he said.
Dignam added that when people keep offering more than what's advertised, it can push a suburb's median rental price up, which forces others looking in that area to pay more for a home.
Baker welcomed the idea of a market rent increase if it was transparent and advertised.
Better Renting's Joel Dignam wants to see rent bidding outlawed for landlords, agents, and tenants to make the system fairer. (Source: Better Renting/AAP)
How does rent bidding work in each state and territory?
The price has to be fixed and cannot include a range, like $550-600 per week as that can kick off rent bidding. Agents and landlords are also banned from using phrases like "offers from" or "by negotiation" in rental listings.
However, they can still accept a higher rental offer if it is made "freely and voluntarily" by a prospective tenant.
Victoria
The state government has been trying to close a "loophole" in rent bidding laws to outlaw tenants from offering more money.
While landlords and agents are banned from the practice, Victoria wants to make sure both sides of the equation stick to the fixed advertised price.
The proposal was announced in 2023 and it hasn't been legislated yet, but if it does, hefty fines will be handed out to landlords and agents involved in accepting higher offers.
Queensland
Rental properties have to be advertised at a fixed rate, instead of a rent range.
Landlords and agents also aren't allowed to tell applicants to offer over the advertised rental price and encourage them to outbid each other or accept offers of higher amounts over the advertised rental price.
Tenants cannot be asked or encouraged to offer higher amounts, however, they are not banned from doing it on their own accord.
Tasmania
Rental listings have to be set at a fixed rate and cannot include phrases like "expressions of interest" or rent being "from" a certain amount.
Owners also must not invite people to make an offer for more than the advertised amount.
South Australia
Landlords and agents face penalties of up to $20,000 if they're caught encouraging rent bidding. Properties also must come with a fixed rate.
Northern Territory
Rent bidding is explicitly outlawed in the Top End, with landlords forced to offer a tenancy with rent set at a fixed amount.
A landlord can't accept payment from the tenant that is higher than the rent fixed at the time the tenancy was offered.
A property is not allowed to be pulled from advertising and re-listed at a higher price.
Landlords are only allowed to ask tenants to pay more rent if "additional benefits or services are provided" that aren't included in the offer, like gardening services.
