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A Melbourne-based real estate agency has apologised after being criticised for soliciting rent bidding, saying it did so by mistake.
Tenants advocate and — — called out a Nelson Alexander employee on Monday night, accusing them of the unlawful practice.
In a post on X, van den Lamb shared a screenshot of an email sent by the Nelson Alexander office responsible for the one-bedroom apartment in North Melbourne, which it currently has listed for $480 a week.
The email, which appears to have been sent after an inquiry about the property was received, said: ” We are now open to offers in the vicinity of $480—$515 per week for this property.”
“Hey @NelsonAlexRE you know soliciting for rent bidding, and not offering rentals at a fixed price is illegal right?,” van den Lamb wrote on X.
The apartment in North Melbourne is advertised for $480 a week. Source: Supplied / realestate.com.au
The property in question had been on the market “at a set price” for 35 days, the company’s head of operations Jamie Owen responded in a statement posted in reply, with the team working to find a renter for the owner.
Owen said the owner had agreed to receive some applications that had offered a lower weekly rental amount, and a Nelson Alexander employee had emailed a range to those who had enquired previously rather than “securing a final price”.
“Unfortunately while focused on trying to help the owner, the team member didn’t realise the error,” Owen said in the statement. “The intention wasn’t to put renters into a bidding war but in fact secure a renter for the property.”
He apologised and said the business would review its “training and processes”.
Soliciting rent bidding for a property is , and landlords and agents who do face penalties.
Rent bidding, also called rental bidding or a rental auction, is the process of negotiating the price of rent.
Previously to encourage rent bidding, some property advertisements featured a “price range” instead of a fixed rent.
Landlords and agents are now not allowed to share if someone has offered to pay more rent or encourage a tenant to pay more.