How compliant are NSW agents under the new rent bidding laws?
/27 June 2023
NSW Fair Trading has released a report after monitoring the conduct of agents under the new rent bidding laws introduced late last year. Fair Trading announced earlier this year that they would be undertaking a ‘rent bidding compliance program’.
In their latest Property Matters issue, NSW Fair Trading reports that inspectors recently conducted 76 undercover inspections at open homes and reviewed over 1,100 online rental advertisements. It was found that 98% of agents visited were complying with the ban on solicited rental bids.
Further reform to the rules around rent bidding will be carried out under a new bill, which was introduced to NSW Parliament last month.
NSW Fair Trading reports further on the matter:
Rent bidding compliance program results
New rules banning solicited rent biding and changing the way agents can advertise rental properties in NSW started in December 2022.
NSW Fair Trading inspectors are enforcing these rules and recently conducted 76 undercover inspections at open homes and reviewed over 1,100 online rental advertisements. The inspectors found 98% of agents visited were complying with the ban on solicited rental bids.
Follow the rules to avoid financial penalties and damage to your business’ reputation. A breach may result in an on-the-spot $550 fine for an agent, or $1,100 fine for a corporation.
Only list a property with a fixed rental price. You cannot reference a price range in rental advertisements or use terms such as: price on application, negotiable, contact the agent for a price or deposit taken.
Do not solicit rental bids. You cannot invite prospective tenants to pay more than the advertised rental price. You can accept a higher rental offer if it is voluntarily made by prospective tenants.
These rules increase transparency for anyone trying to secure a rental property.
Snapshot of compliance program results March – April 2023
NSW Fair Trading inspectors conducted 76 undercover inspections at open homes and reviewed over 1,100 online rental advertisements.
98% of agents were found to be compliant with the ban on solicited rent bidding.
51 agents were found to have non-compliant ads, the most common breaches included:
instructions to ‘contact agent’ instead of listing a fixed rental price
banned terms, such as ‘negotiable’, ‘price on application’ or ads listing a price range rather than a set rental price.
51 agents were fined, losing a total of $51,000 for not following the advertising rules. 20 of these 51 agents had previously received guidance from NSW Fair Trading on the advertising rules and still failed to comply.
During the inspections, NSW Fair Trading inspectors also assessed the condition of the rental premises. Eight of the 76 inspections reported issues with mould. Inspectors provided agents with guidance on how to resolve the mould issues before leasing the properties.
Customers can report non-compliance on the NSW Fair Trading website any time. Inspections on rent bidding and conditions of rental premises will be conducted throughout the remainder of the year.
