Rental crisis creates rent bidding scenario in Brisbane
According to Suzana Wade of Locate Property, a reputable property management company with firsthand knowledge of the situation, renters are taking “extreme measures” in response to the low vacancy rates.
Suzana Wade a well-known Brisbane real estate expert, has noticed that low vacancy rates are putting pressure on the rental market and making things unfair for renters.
A top real estate expert says that “historically” has recently published at the REIQ means low vacancy rates in Queensland are making it hard for renters to find a place to live because the demand is higher than the supply.
According to Ms. Wade, renters are competing for fewer available properties as a result of the competition.
In a tight rental market, real estate agents or property managers may suggest paying more than the asking rent to get a place to live.
The choice, according to Ms. Wade, was made as a result of Queensland’s “critically low level” vacancy rates, which made things challenging for tenants.
“Although interstate migration has reached very high levels, supply is the real underlying issue here.
Unfortunately, there is a significant mismatch between the amount of rental housing that is available and the demand for it. This problem won’t be solved soon.
Due to a phenomenon called “rental bidding,” potential tenants may haggle back and forth like they’re bidding at an auction.
It often means that the landlord gets a weekly rent payment that is much higher than the price they asked for the house.
Even though it’s against the law in Queensland and most of the other Australian states, Ms. Wade says tenants can still make higher offers as part of their own strategy. Unsolicited offers from tenants trying to secure the property really have become the norm for the more competitive properties.
She said that landlords and property managers can’t ask for more rent, even though tenants are making bigger offers.
Not only are candidates providing more money towards their rent, but they are also providing more money towards their rent upfront or seeking additional methods to stand out.
Of course, that’s just how people are.
When we are desperate to find safety for ourselves and our families, we will look for ways to stand out from the crowd said Suzana.
More news and updates follow Suzana Wade at www.locate.net.au/blog
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