Just when you thought renting was bad enough, you have a company come along using tactics that are reminiscent of the worst of the shifty housing bubble tactics.
They had advertised a home at a price that seemed fair and accurate for the area. They then proceeded to state that due to the high interest, they were bumping the price. This, to get a bidding battle going on. This, after applications were submitted and fees paid. This might be a fairly common tactic, but...Is it legal? Yes. Is it moral? Arguable. Is it indicative of the shifty tactics of the bubble housing markets? Heck, yeah.
I guess it is a good thing we found out how they work now, as opposed to finding out after the fact. And if they try and justify this by saying that everyone does it, well, that doesn't mean that it isn't subterfuge at work and duplicitous at its heart.