Section 56 provides tenants clarity with respect of expected rent costs during the letting process by requiring a landlord, or person acting on behalf of the landlord, to state a specific and proposed rental amount in any written advertisement or written offer for a proposed letting. Subsection (3)(a) prohibits a landlord, or person acting on their behalf, from asking or encouraging a prospective tenant to offer an amount of rent above that which is stated in the written advertisement or written offer for the proposed letting. This will prevent landlords or letting agents from running auctions or encouraging prospective tenants to bid against each other to set the final price. Subsection (3)(b) prohibits a landlord, or person acting on their behalf from accepting an offer of rent above that which the landlord or letting agent has stated in a written advertisement or written offer.
Part 1: Tenancy reform Chapter 6: Stating the proposed rent and rental bidding Section 56: Requirement to state rent and avoid rental bidding Background