Friday, June 29, 2012

Rental Auctions! What the?!

What is it with some real estate agents in Melbourne at the moment...they're auctioning off rental properties.



No, they're not selling them but they don't set a rent for them. No, potential tenants have to do that!!

Some friends have moved back to Melbourne and are staying with in-laws while they find a place to rent for the next year while they get settled and eventually buy a home...

Last weekend, they started the hunt for somewhere to rent and looked at more than a dozen properties.....and were told they'd have to "make an offer".



Needless to say my friends missed out on quite a few potential homes because they "got out-bid"

What's going on? Why are some Real Estate agents not doing their job and setting rents? Are they trying to cash in on the limited number of rentals compared with the number of potential tenants?

Is this normal?

Is this legal?

....or am I way out of touch with the way things are done now?

5 comments:

  1. I don't know what is happening but we have a house in Melbourne (Point Cook) that has been empty since Christmas. Dealing with agents is not easy, don't know why they expect people to bid, doesn't make sense. We set our rent based on their advice and what our previous tenants were paying. Do they want more commission? I have no answers only more confusion! X

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  2. It's terrible isn't it? So greedy. I have heard about it happenong in Melbourne and Sydney but I don't think it's legal in Tasmania. I really feel for people trying to get into the rental or real-estate market. x

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  3. I've never heard such a thing. How dreadful. My daughter has just moved out of home and was knocked back over a dozen times until I went with her and went 'guarantor'. She got that place immediately!($425 p.w for a studio!) I needed to show my property valuation / rates notice. It seems that we needed to prove our worth in order to support out daughter's application! Hopefully, with a positive rental history, she can be successful on her own with any future rental agreements. Very belittling for a proud young adult starting out though.
    x KL

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    1. Shocking! That's an awfully high rent for a studio isn't it! It's amazing what hoops people have to jump through just to get somewhere to live.
      Terrible stuff
      xx

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  4. It's so aggressive these days with housing. People bid then they are outbid over and over again.

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