Increased competition among Australian renters has led to extreme tactics being used to secure accommodation.

A new Consumer Insights Report by realestate.com.au has unearthed some alarming findings among renters, who are going to extreme lengths to secure a home due to a lack of quality rental accommodation on the market.

Twenty-three per cent of property seekers looking to rent have admitted to offering between $10 and $20 dollars more than the asking price per week in order to secure a property – a +4 per cent jump from the last report in 2007.

A further 30 per cent of respondents had even offered real estate agents an upfront payment to secure the right rental property, with male respondents, those living in metropolitan areas and those searching for higher-end properties ($750 or more per week) more likely to offer an upfront payment.

Experts say the increased competition could be attributed to a number of market forces including a shortage of properties, seasonality and lack of quality of stock.

According to the report, there has been a significant jump in the number of people attending open for inspections with more than five people inspecting properties in 59 per cent of cases, up 17 per cent from 2007’s results.

Two out of three (65 per cent) Australians are searching for properties with weekly rents of $300 or more – a 25 per cent jump since the last report.

While rental rises have been consistent among most states, those living in New South Wales (40 per cent – a +18 per cent increase) and in Western Australia (41% – a +26 per cent increase) are now searching for properties costing $400 or more a week, according to the report.

(1) realestate.com.au Consumer Insights Report for Rent covering the period from 31 January – 9 February 2011 with 2,820 Australian property seekers taking part.

Curtis Cooper, realestate.com.au