NSW real estate agents use legal loophole to get more money for rentals after ... trends now
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Landlords have found a sneaky way around a ban on asking for offers above an advertised rental price - they can just wait for prospective tenants to make an offer.
The loophole allows NSW real estate agents to still get more money than the advertised listing as they're not breaching the law brought in last December.
The state government had tried to regulate the rental market and make it fairer for tenants by putting a ban on 'rental auctions'.
A prospective tenant is still allowed to make a higher offer than the listing as long as they are not prompted by the landlord or real estate agent.
Landlords have found a sneaky way around a ban on asking for offers above an advertised rental price - they can just wait for prospective tenants to make an offer (pictured, people queueing to view a rental property)
The loophole is being used by people desperate to secure a roof over their head in the tightest rental market in more than a decade.
The rental vacancy rate in the greater Sydney area dropped to 1.4 per cent last month and the lines of people queueing to view properties have doubled in length.
But even offering a premium on top of the advertised price is no guarantee of getting a lease - there is always the chance someone else offered even more, leading to auction-type conditions.
One of those whose offer to pay more has not worked so far is Ryan Donachie, who has viewed more than 20 rentals around Bondi beach in the past month.
He and his partner are looking for something for under $1,000 and have regularly found 20 people or more at viewings.
Despite offering to pay up to $25 a week above the asking price and being willing to pay several weeks' rent upfront, they are still looking.
