‘Unprecedented’: Rent crisis hits new low

The rental crisis in Queensland is forcing renters to take extreme measures to obtain property as “unprecedented” low vacancy rates outstrip supply, one leading real estate expert claims.

Real Estate Institute of Queensland chief executive Antonia Mercorella said renters are battling it out for a shrinking supply of properties – forcing many to consider participating in rental bidding.

Rental bidding is when real estate agents or property managers suggest offering more than the asking rental price to secure a property in a competitive rental market.

Ms Mercorella claimed the move was because Queensland’s vacancy rates were sitting at a “critical low level” that was challenging for renters.

“Here in Queensland … it is proving incredibly challenging for tenants,” she told Today on Friday.

“We have experienced very high levels of interstate migration but, ultimately the issue is a supply issue.

“The demand for rental property is far outstripping the level of supply that‘s available and of course, that’s not an overnight solution or quick fix, unfortunately.”

The phenomenon known as rental bidding can lead prospective tenants to haggle back and forth in a similar fashion to bidding at an auction.

It often ends up with the landlord taking home a much higher weekly rental income than they advertised the property for.

The process is unlawful in Queensland and most other Australian states but Ms Mercorella said the law doesn’t stop renters from offering more money under their own scheme.

“You will find that property managers or owners can’t actually ask for higher rent but, of course, what we are seeing is that applicants are offering more,” she said.

“Not only are we seeing applicants offering more rent but they are also offering more rent but they are also offering rent in advance or looking for other ways to stand out.

“Of course, that is human nature.

“When we are desperate to secure shelter for ourselves and for our families people will look for ways to stand out from the pack.”