As Australia’s rental crisis deepens, a controversial practice is forcing tenants to bid against each other, driving up rental prices and making housing even more unaffordable. New research from the Real Property Report 2025 has found that one in seven renters is voluntarily offering $125 or more per week above the advertised rent to secure a lease.
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This means renters are paying up to $6,500 extra per year, just to edge out their competition. Despite rent bidding being outlawed in every Australian state and territory, desperate tenants are still offering more money, while landlords and agents are legally allowed to accept these higher offers in most cases.
For renters like Drew Baker, a 29-year-old retail worker in Melbourne, the system feels frustrating and unfair.
“We had strict budgets, but those went up massively. It felt impossible to get a place without offering more.” – Drew Baker, Melbourne renter
Baker, who spent months looking for a home with two friends, originally budgeted $250 per week for rent. However, after facing multiple rejections and seeing the competition firsthand, he was forced to increase his budget to $300 per week.
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How Rent Bidding Works: The Hidden Costs for Tenants
The Real Property Report found that:
- 46% of tenants offer between $25 and $74 extra per week to boost their chances.
- 25% of tenants offer between $75 and $124 extra per week to secure a lease.
- Some renters are paying an additional $6,500 per year, despite already high rental prices.
For many, this financial burden comes on top of rising living costs, interest rate hikes, and stagnant wages, making it even harder for renters to save for a home deposit or manage their expenses.
Rent Bidding: Illegal Yet Unstoppable?
Every Australian state and territory has banned landlords and agents from soliciting rent bids—but there’s a loophole. While they can’t encourage tenants to offer more, they can accept higher offers if tenants make them voluntarily.
According to Joel Dignam, executive director of Better Renting, some real estate agents take advantage of this by listing properties at a lower price than they expect to receive, knowing tenants will offer more.
“It creates a very non-transparent market, and renters waste a lot of time inspecting homes they can’t actually afford.” – Joel Dignam, Better Renting
Some real estate agencies have even been caught removing listings and re-uploading them at higher prices after receiving multiple high offers—essentially turning the rental market into an auction house.
Could Banning Rent Bidding Backfire?
Dignam argues that while completely outlawing rent bidding might lead to higher advertised rents, it would create a more honest and transparent market.
“It might mean the listed price is higher, but at least renters won’t waste time attending inspections for homes they can’t afford.”
However, even if rent bidding were banned, renters would still be competing with each other, and landlords would still choose the highest or most financially stable applicant.
State-by-State Breakdown: How Rent Bidding Laws Differ Across Australia
Each state has different regulations regarding rent bidding:
✅ New South Wales: Landlords and agents cannot invite higher offers, but tenants can still offer more voluntarily.
✅ Victoria: Rent bidding laws may soon be tightened to stop tenants from offering more money.
✅ Queensland: Rent bidding is illegal, but landlords can accept higher offers without advertising them.
✅ ACT & Tasmania: Agents cannot encourage bids, but tenants can voluntarily offer more.
✅ South Australia: Strictest penalties—agents and landlords face fines up to $20,000 for encouraging bidding.
✅ Northern Territory & Western Australia: Landlords must rent properties at the fixed advertised price.
Renters Struggle as Competition Heats Up
Renters across Australia are spending an average of 8 hours per week searching for a home, rising to 9.2 hours for pet owners. Baker described the search process as feeling like a “full-time job”, with tenants needing to:
- Create customized applications for each property.
- Attend multiple inspections (often during work hours).
- Constantly follow up with real estate agents.
For many, the stress and time commitment make finding a rental home an exhausting and demoralizing experience.
The Bigger Picture: How Rent Bidding Affects Everyone
Dignam warns that rising rental bids push up suburb-wide rental prices, meaning future renters face higher base rates. In other words, the more renters voluntarily overpay, the more expensive rentals become for everyone.
“Unless we radically change the rental system, tenants will always be competing, and landlords will always favor higher offers.”
Is There a Solution?
While Better Renting advocates for an Australia-wide ban on rent bidding, enforcement remains a challenge. Even if legislation closes the loopholes, landlords can still legally choose the highest bidder, which means the fundamental problem remains.
For renters, the best short-term solution is to:
✅ Stick to their budgets and avoid overbidding unless necessary.
✅ Apply to multiple properties at once to increase their chances.
✅ Negotiate lease lengths to lock in stable pricing for longer.
But ultimately, without major rental reforms, Australians will continue to pay thousands extra per year—just for the basic right to a home.
🚨 What do you think? Should rent bidding be completely banned? Have you been forced to offer more than the advertised price? Share your experience! 🚨
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