A controversial suggestion from a real estate business has sparked backlash after it claimed landlords would be doing tenants a favor by increasing their rent.

Melbourne’s southeast property agency, Barry Plant, located in Korumburra, asserted that adjusting rents to reflect market conditions would benefit tenants by preventing rental shock if they decided to move.

An agent mentioned in a social media video that even a slight increase, such as $5, would make a difference. ‘If you don’t put your rent up, you risk pricing tenants out of the market if situations change.’

The agent continued that putting up prices even by the small amount would be a good deed. 

‘Should you sell or need the property back, your tenants might struggle to maintain their accustomed standard of living,’ explained the agent further.

Lisa Pennell, Barry Plant’s chief executive, apologized for the video while acknowledging the uproar it caused, emphasizing it was meant with good intentions.

The video, which was reposted by tenants advocate Jordan van den Lamb, garnered tens of thousands of views and met with a flurry of backlash. 

As critic Mr. van den Lamb put it, raising the rent regularly prepares tenants for potential affordability issues in the broader market, noting the rising living costs.

Barry Plant Korumburra has since deleted the TikTok in which a local agent (pictured) advised landlords to raise rents every year to ensure tenants are not ‘priced out’ of the market 

Viewers of the video were outraged by the advice, claiming higher rents did little to serve tenants. ‘(What the f***) kind of backwards logic is that?’ one user wrote.

‘I saw this the other day and I’m still so angry,’ another wrote. 

Tenants advocate Jordan van den Lamb, who goes by Purple Pingers, slammed the advice in a scathing video posted to social media, which also garnered tens of thousands of comments, many of which were critical.

Some viewers, however, agreed with the advice, claiming tenants would otherwise find it difficult to readjust to higher rents elsewhere in the case of an eviction or relocation. 

‘There is some valid logic there. I’ve heard of plenty of tenants that get used to years of low rent and get smashed when they suddenly have to pay market rent,’ one said. 

The video added insult to injury for renters in Victoria and nationwide, where tenants in most major cities are facing rents at or near record levels.

While mid-yearly data from Domain and Cotality suggested rental pressures were easing in July, the national property market suffers a chronic supply issue. 

According to Cotality’s latest Quarterly Rental Review, Australia’s rental supply is ‘exceptionally low’ with a median rental price increase of $1,134 annually. 

Tenants advocate Jordan van den Lamb slammed the advice in a scathing video posted to social media, where it garnered tens of thousands of views 

While tenants are hoping interest rate cuts and slower inflation will reduce pressure on rental price growth, others, like international property consultancy CBRE, believe vacancy rates will continue to tighten, forcing up demand. 

Ms Pennell said the agent was advocating for consistent, gradual increases in rent in line with the market as opposed to massive annual spikes. 

‘The theory stands, the sense of gradual increases are better for everybody, rather than sudden, short shocks, which was her intention,’ she told Yahoo Finance. 

‘She’s talking about $5 increases. She’s not talking about enormous increases.  

‘She’s talking about keeping pace with the market so that everyone’s clear on what market value is.

‘It’s not encouraging or suggesting any predatory behaviour in any way.’