PHOTO: Real estate agency Nelson Alexander
NOTE: Scroll to the bottom for an update
Real estate agencies have been exposed for raising rental prices on properties even before they undergo inspection. A text message from the real estate agent Nelson Alexander, pertaining to a rental initially advertised at $600 per week, informed interested parties of a price change to $650 due to an “overwhelming response.” Melbourne journalist Jacqueline Felgate shared this text on Instagram, questioning the permissibility of such a move.
https://propertynoise.co.nz/au/special-offer-looking-to-advertise-online-but-finding-the-big-boys-too-expensive/
Opinions on the legality of this action varied in the comments section, prompting online debates about the legitimacy of altering the rent from the initially advertised amount.
The 2021 Victorian laws, which prohibit “rent bidding,” emphasize that landlords and estate agents must only advertise rental properties at a fixed price, disallowing solicitation of offers exceeding the advertised amount.
The legality of hiking the rent from the previously advertised figure has been debated online
Real estate agent Nelson Alexander has apologised for hiking the asking price of rentals even before they are inspected
Nelson Alexander responded to the controversy, apologizing for the price adjustments and asserting that while it might not be a breach of legislation, it does not align with their standards. The agency expressed commitment to reviewing their processes, ensuring avoidance of such incidents in the future, and emphasized their responsibility to the community during challenging times.
Melbourne journalist Jacqueline Felgate has been sharing frustrating experiences of people looking for rentals
Despite these responses, Felgate shared additional instances of questionable practices in the rental market, including a case where a tenant was allegedly misled about the reason for eviction. Some comments defended landlords, citing economic pressures such as tax increases, while others expressed frustration and despair in the face of the challenging rental market, characterized by rising prices and limited availability.
UPDATED: Tuesday 23 January, 2024
Nelson Alexander has confirmed to Daily Mail Australia that the original listing was an error.
The company says it has put in processes and training to make sure such a mistake does not occur again.
Following her original post Felgate posted a message from Nelson Alexander that said changing the listed price was ‘not a breach of legislation’ that it did not ‘follow the standards we hold ourselves to.
We made a mistake, owned it and will implement processes to ensure it never happens again
We priced a property incorrectly, the market responded by having a huge number of people register to attend the open, the manager realised the error and corrected the weekly rent. The change was poorly communicated.
The message went on to ‘sincerely apologise for any frustration this may have caused’.
‘For clarity, we do not solicit or encourage any form of rental bidding and we have taken the property offline and are currently reviewing our processes to ensure this doesn’t ever happen again,’ Nelson Alexander said.
‘We are deeply aware of the moral and social responsibility we have to the community during these challenging times and will continue to hold ourselves accountable.
We appreciate your patience and understanding as work though this.’
Victorian laws passed in 2021 outlawed so-called ‘rent bidding’.
‘Rental providers (landlords) and estate agents can only advertise or offer rental properties at a fixed price,’ the laws state.
‘They are banned from inviting rental bids or soliciting offers of rent higher than the advertised price.’