Understanding the Rules Around Rental Bidding Wars in New Zealand
In Britain, the Labour government is considering a law to prevent ‘Dutch Auctions’ or bidding wars over rental properties. Interestingly, New Zealand’s own Labour government introduced similar legislation back in 2021. However, there seems to be some confusion around how these rules apply here, and we’ve had several members reach out for clarification.
One common misconception is that landlords must rent their properties at the advertised rental price. This is not true. While landlords or property managers are required to state the rent in their advertising and cannot solicit higher offers, the law doesn’t prohibit tenants from voluntarily offering to pay more.
In simple terms, while you cannot ask for more than the advertised rent, if a prospective tenant willingly offers a higher amount, you are legally allowed to accept it. So, you can still choose the tenant who offers the most – you just can’t initiate the process by asking for it.
Pro Tip: Document Offers
One tip from an experienced member: if a tenant offers to pay more than the advertised price, make sure you document it properly. Keep records of the offer – whether it’s in writing through text, email, or letter. This ensures you have a clear paper trail if any disputes or questions arise later. As always, it's better to be safe than sorry when dealing with legal requirements around renting.
This clarification should help clear up any confusion and keep your rental process smooth and compliant.
Need help or
support?
