Edition 44, May 2007

Industry code proposed for rent bidding in Tasmania

An industry-based prohibition on the use of rent bidding in Tasmania is being proposed for the state's real estate sector to give low income earners a fairer go when renting.

Rent bidding can be conducted by either a tenant or agent and involves negotiation of the price of a rental property, rather than renting at the advertised price.

An investigation into the level of rent bidding in Tasmania by the Office of Consumer Affairs and Fair Trading found that at least 10 of 89 real estate agents practiced rent bidding. It was also apparent that some private property owners use rent bidding.

An industry-based solution is being proposed with the Office of Consumer Affairs and Fair Trading and the Property Agents Board discussing the option of including prohibition of rent bidding in the board's code of practice.

It is hoped that this will act as a deterrent to real estate agents' use of rent bidding.

For more information visit www.consumer.tas.gov.au/tenancy__and__real_estates

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