Renting a property has become like buying at auction, with potential tenants being forced to “bid” higher rents to secure a home amid a severe shortage of rental homes.

Tenants’ Union chief executive Leo Patterson Ross says tenants feel they are being forced to offer more than an advertised rental price or to agree to pay a bulk sum upfront in an effort to sign up a home.

“At the moment as things get very tight, many people are looking for a property and there is only a limited number available, which means the incentive that people feel to make a successful application grows,” he says.

Patterson Ross says it is distressing and frustrating for would-be tenants to be told they have to come up with even more money than advertised to be in with a chance to secure a rental property.

He says some property managers are calling potential tenants to see if they are wanting to offer above the asking rent.