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Rental Auctions

Discussion in 'Real Estate' started by Jacque, 19th Aug, 2008.

  1. Jacque

    Jacque Team InvestEd

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    From the ABC News....

    The Housing Industry Association (HIA) says home-building activity is almost at a standstill and people will soon be bidding at auctions to rent a house.

    The HIA says the shortage of homes needed to house the population will blow out to 45,000 during this financial year...

    Rest of article here

    I think the concept is certainly valid- but you'd need to ensure that all bidders are pre-qualified. Speaking from experience, I'd rather have a better tenant paying $10 a week less than a problem-prone one any day!!
     
  2. D&K

    D&K Well-Known Member

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  3. Billv

    Billv Getting there

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  4. D&K

    D&K Well-Known Member

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    When you advertise one price and then encourage potential tenants to offer more to secure the property. Particularly if it becomes a dutch auction with the PM phoning tenants telling them that someone else has offered more and they would have to offer more again if they want to rent the property. How do people know that there really are othe offers in this case?

    I think it's a little bit of a grey area, because in a tight market prospective tenants can offer more anyway, even if that wasn't the landlord's / PM's intention.
     
  5. Billv

    Billv Getting there

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    Yes it's like that, but money is not always the deciding factor.
    I prefer to get a good tenant at a reasonable rent than a questionable one at a higher rent.

    Also, not all applicants offer to pay a higher rent.

    I have seen some people presenting a folder with their application including supporting documents, i.e employment records, written references and even family pictures.

    Cheers