More than half of Australian renters are feeling intense pressure to go beyond the listed price in a bid to secure a rental, as rental markets across the nation continue to tighten, according to recent data.
The latest Real Property Report 2025 highlights that 73% of Australian renters feel compelled to enhance their applications in an attempt to stand out from the competition. As vacancy rates remain low, over two in five tenants are offering an additional $75 or more per week in order to secure a lease.
Renters Struggling with Financial Pressure
As rental conditions become increasingly difficult, tenants are being pushed to make significant financial sacrifices. The rising cost of rent has led many to reduce their savings, with over 60% of renters experiencing two or more rent increases in the last two years. This has contributed to heightened financial stress, affecting more than 40% of the renting population.
The findings reflect a growing dissatisfaction with how leasing agents handle applications and manage properties. Nearly 60% of renters voiced frustration with their interactions with leasing agents, with some choosing not to pursue certain properties due to negative experiences.
Joel Dignam, executive director of tenant advocacy group Better Renting, expressed concern, stating, “Renters are constantly sharing their frustration with the process—whether it’s with applications, facing rent hikes, or dealing with agents.” He further emphasized the troubling reality of renters feeling pressured to offer above the asking price, pointing to a gap in existing protections against rent bidding practices.
Legal Loophole: Rent Bidding Remains Unchecked
Despite laws in New South Wales and Victoria that prohibit real estate agents from soliciting rent offers above the advertised price, applicants are still finding ways to submit higher bids. This loophole continues to fuel the pressure renters face in securing homes.
The Rise of Build-To-Rent Communities
As traditional rental markets strain under pressure, a growing number of tenants are turning to Build-To-Rent (BTR) developments as an alternative. These purpose-built rental communities offer long-term leases and hotel-like amenities, providing tenants with more stability compared to traditional rental properties.
Jack Barnett and his partner, along with their dog, Brutis, recently moved to The Gladstone, a BTR development in South Melbourne, after a series of disappointing rental experiences. Barnett noted the appeal of the BTR model, stating, “The amenities are unmatched, and we wouldn’t have access to these in the traditional property market.”
The Gladstone apartments, which offer studio to three-bedroom options, range from $665 to $1,465 per week. While this is roughly $100-$150 more than typical rental properties, Barnett considers it a worthwhile investment given the value of the amenities and the personalized service provided by the leasing team.
Pets Welcome in BTR Developments
Barnett also highlighted the pet-friendly nature of BTR communities, which is a rare advantage in traditional rental markets. “In traditional rentals, landlords often prefer tenants without pets, but at The Gladstone, pets are an integral part of the community,” he said, offering peace of mind for tenants like him who struggle to find pet-friendly housing.
As rental markets across Australia continue to tighten, BTR developments offer an attractive option for those looking for a more secure and amenity-rich living environment, and they may just provide a solution to the mounting pressure renters are currently facing.
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