Questions raised over efficacy of rental bidding laws

ABC NEWS (Australia)

Every state in Australia has now outlawed or promised to ban rental bidding where an agent can solicit a 'rental auction' above the original asking price. But the number of prosecutions in South Australia is raising questions about how the laws are enforced and whether they're effective.

Transcript

00:00 For this family, being rejected from around 30 rental properties has taken a toll.

00:07 Yeah, up all night, sick, yeah, stressed and worried.

00:12 With properties so hard to come by, three generations of this South Australian family

00:16 are now cramming in under one roof.

00:19 She was living on her own and she come and live back with me because of finances, extra

00:24 support and yeah.

00:26 If I was out, there is nothing in the complete Western suburbs that I could personally go

00:31 for alone for me, my son and my dog.

00:33 Like at all, like no, no, I have to move out.

00:36 The fight for a rental property in Adelaide shows no signs of slowing down.

00:40 Just 0.83% of rental properties in Adelaide were vacant, according to the latest statistics,

00:46 and rents have risen 13.5% in the past 12 months.

00:50 With the median Adelaide asking price now $590 per week.

00:54 With the rental market so competitive, many wannabe renters have taken to offering above

00:59 the asking price in a bid to find a property.

01:02 But since last year, it has been illegal for South Australian real estate agents to invite

01:07 offers above the asking price.

01:09 Since September, we've already fined for people, for agents who have done the wrong thing in

01:13 terms of either not having a fixed price, having ads in that say contact the agent or

01:19 you know, all offers considered.

01:21 That's where we've imposed fines already and others we have given some warning.

01:26 While it's illegal for agents or owners to solicit bids above the asking price, there's

01:30 nothing to stop applications offering extra money from being submitted.

01:35 Advocates say rental bidding is still rampant.

01:37 Is a little embarrassing to be talking about banning something that hasn't actually been

01:43 banned and is just highlighting the ineffectiveness of compliance with that new part of the law.

01:53 She says more needs to be done to protect renters.

01:55 So we would really love the state government to invest and fund that sort of work that

02:02 would enable better compliance and reporting when it does come to renting law.

02:07 It's about us knowing about it and being able to take action.

02:10 So the more we know about it, the better, but we also know the real estate industry,

02:15 real estate institute as the EPIC body is educating their staff, their agents and making

02:22 sure that people know these laws are there.

02:24 Anyone who suspects rental bidding laws are being breached is urged to contact consumer

02:29 authorities.

02:29 [BLANK_AUDIO]

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