"For that particular flat we know that we aren't going to be getting groups looking to have a quiet year so regardless of the quality of the applicants on paper, there are always going to be few things to deal with throughout the year.
"We used to run competitions to decide who got a flat but decided to stop this due to complaints so price became the next option."
Offering for tender would "just speed up the process and make it transparent from the beginning", Cutler said.
"This was 100 per cent my idea, I apologise to those offended and take full responsibility. We won't try this again."
The Debacle belongs to company TDub Limited, directed by rugby players Michael Leitch, who plays for Japan, Johan Bardoul, France-based Maama Vaipulu and the Chiefs' Brad Weber, who played several games for Otago in 2012.