Perth’s property market is tight with rental auctions commonplace

“There were 17 people who bid on this house and the majority of people bid more for it,” he said.

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“If you’re younger and you don’t have [five] property references, give more personal references from friends, family and workplaces.

“We had five young boys who were looking to rent a house for $1,000 a week. They were chosen over other applicants because of their credentials and the effort they put in. »

He also said tenants should be prepared to diversify when looking for a place to live.

“I think it’s a fair process…I feel for low-income people and I think the state government needs to do more to provide housing,” he said.

“I just don’t think struggling people would ask for a $700-a-week house…I think it’s really up to homeowners to decide how much to accept for their house.”

Ashleigh Goodchild, director of property management at SOCO Realty, said she wouldn’t recommend offering more money, but it had become more common for tenants to do so.

“I think people are excited to see so many people in an open house and they feel they have to offer more to stand out, between $10 and $100 more,” she said.

“Usually they offer about $25 more per week…but I would say the best way to stand out is to write a really good cover letter telling us why you like the property and a bit about yourself.

“People have started writing them more since the rental market has tightened up and many are including pictures of them with their family, or pictures of their pets if they have any.”

Goodchild said she’s also noticed people offering months’ rent up front and recently saw a tenant offer six months up front to secure a house while he was between jobs.

She said another had offered 12 months.

“From what I’ve seen, offering more money only works if there are multiple applications of the same standard and the inducement adds an advantage that the others don’t have,” Goodchild said.

Real Estate Institute of WA chairman Damian Collins said he also believed tenants were offering more than asking price, with just 0.5 per cent vacancy in Perth.

“With the low rental stock available and the high demand, we are seeing some tenants offering more than the asking price to secure a property,” he said.

“It’s more common if they’ve missed out on other properties.

“Our vacancy rate across WA is very low, but every week over 700 properties in Perth alone are let by REIWA agents, which means there are still properties available.”

The national rental vacancy rate fell to 1% in March, halving year-over-year, according to Domain’s latest rental vacancy rate report.

Landlords in competitive markets were inundated with inquiries across the country amid the dearth of available rentals.

Head of Research and Economics, Nicola Powell, said already tight rental markets were coming under increased pressure following the reopening of international and domestic borders.

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“With many cities already posting record rents, combined with the current tightening of conditions, we are likely to see rental price increases continue, leading to worse conditions for tenants,” Powell said.

Collins said despite rent increases over the past 12 months, WA remains the most affordable place to rent in the county.

“The proportion of family income needed to repay rent in WA is just 19.7% compared to 26.1% in New South Wales and 30% in Tasmania,” he said.

Australian Greens candidate for Perth, Caroline Perks, said the shortage of affordable, quality housing in WA was a crisis requiring urgent government attention.

“The housing market is rigged in favor of wealthy investors, and the affordability gap is only widening,” she said.

“With home ownership out of reach for many, it is alarming that the rental market is seeing such fierce competition and so few rights or protections for tenants.”

She said rental auctions were now commonplace and had painful consequences for the community.

“A safe home is one of our most important and basic needs, and that includes building standards during heat waves and severe weather,” Perks said.

“I’ve had so many conversations with tenants in Perth and this is a real issue for them. There is a struggle to find accommodation and no guarantee that it will be of decent quality.

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