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Home bidding site Rentberry set to launch in Australia

By Sabine Brix 1 Comments NEWS, Uncategorised

Rentberry, a controversial American home rental bidding site, is set to launch in Australia amid fears it will increase already-inflated prices for renters.

The site, which launched in the US in 2016, allows tenants to bid against one another to secure a rental property and will launch in Sydney within the next few months with plans to launch in Melbourne further down the track.

The CEO of Rentberry, Alex Lubinsky, said that after interviewing tenants and landlords across the U.S. it became apparent that both parties wanted increased flexibility and transparency within the rental market. He told PPW that Rentberry increases the chance for renters to save money.

"Tenants invite landlords to post properties in order to submit applications via Rentberry because they want to negotiate and get some sort of discount or better deal from landlords (be it hot or slow market)," he says.

renters rentberry

Rentberry will launch in Australia in a matter of months.

Lubinsky suggests that a way this might work is if a potential tenant offers the rental price  a landlord requests, but asks for a large discount in the security desposit, which is where the flexibility comes in.

"There are two components to the site:  rental price and security deposit," Lubinsky explains. "Both of them can go down and this is exactly what happens when tenants rent properties via our platform – we had managed to save on average 5,1% to tenants in the US in only 9 months since the launch," he told PPW.

Tenants Union of Victoria policy officer Yaelle Caspi said rental bidding would further inflate the market in an environment that is already competitive.

“With so many tenants desperate for a home, it is likely that tenants will offer more than they can afford in an attempt to get ahead,” Caspi told Domain.com.

“Rental bidding privileges tenants with more to spend and makes it harder for low-income tenants to compete for properties. This is particularly concerning at the lower end of the market where affordable housing is already so scarce.”

Lubinsky told PPW he didn't think the platform would drive up the prices of rent in Australia.

Comments

  • Ashley Hoey
    May 8, 2017

    Hi Sabine,

    Our real estate startup will help tenants secure a rental and jump the queue.

    We have built the first platform (and mobile app) that allows tenants to get pre-verified and be approved on the spot. It streamlines the entires process, removes paperwork & even helps connect their utilities for free.

    We have been told it’s like a facebook, but for renters.

    Tenants can also share their profiles with potential housemates.

    Forget not knowing who is lurking on Gumtree. Just ask for them to share their profile.

    It has a bunch of other features including rental biding & connect utilities.

    More features are about to be released soon including the ability to pay rent and manage maintenance requests.

    We have already started working with groups such as Raine&Horne and have a number of agencies already using our platform.

    With all the hype that “Rentberry” created, we felt it was time to share our story with the right journalist!

    I would love to tell you more about RentersCard.com.au when you have the time.

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