WA’s new rent bidding reforms may not necessarily reduce the cost of rent for tenants, according to a property expert.

The ban, which came into action on May 16, is designed to prevent landlords and agents from pressuring tenants into paying more than the advertised asking price to secure tenancy. However, tenants are still allowed to voluntarily offer above the asking rent.

Under the new laws, agents are no longer allowed to inform a potential tenant that they have a received a higher offer and will need to raise their bid.

The ban is designed to support tenants by levelling the playing field and reducing the cost of rent.

Hayden Groves is the former president of the Real Estate Institute of Australia.

He says while the ban has good intentions, it could have an adverse effect and actually increase the cost of rent.

He says in the eastern states where rent bidding bans have been in a place for a longer time, landlords have advertised their properties at a higher price to compensate for the lack of bidding.

“It actually hasn’t helped protect tenants as it was intended to do,” says Mr Groves.

In addition, he says as agents are now no longer able to offer advice to tenants about raising their bid, tenants are now “flying blind.”

Mr Groves says he’s heard in the eastern states, desperate tenants have offered 20 per cent above the asking rent where a five-per-cent increase would have landed them the tenancy.

Mr Groves also doesn’t think the new government reforms address the real cause of the rental crisis.

Steve Bennison has worked as a property manager for the last 15 years.

He says he hasn’t noticed people offering excessive amounts over the asking price for rentals since the ban came in. But he says it’s still too early to see what impacts the reform has had in WA.

Mr Bennison says even when rent bidding was legal, his company had never asked tenants to offer more than the asking price.

“We always advise people to put their best foot forward. They don’t have to offer more than the advertised price because at the end of the day it doesn’t necessarily mean they will get the property.”

Linda Taylor has been renting in WA for 25 years. She supports the ban but doesn’t think it goes far enough.

She believes tenants shouldn’t be allowed to offer more than the asking price.

“There’s such a shortage in the market. I think prices should be fixed and that’s it,” she says.

Ms Taylor says it’s especially tough for single parents who don’t have access to two incomes.

The rent bidding ban is one of six reforms which the government has introduced in 2024.