3 March 2023

In their latest Property Matters issue, NSW Fair Trading has announced how they plan to effectively monitor the behaviour of agents following the recent ban on solicited rent bidding. From late March, inspectors will be reviewing online rental applications, in addition to attending open homes, to identify instances of non-compliance with the ban.

A female real estate agent shows two senior-aged clients around a home. They are standing in an open living space with lots of light and trees outside. — NSW Fair Trading has advised that their inspectors will be attending open homes to observe agents interacting with potential tenants on price. This is to ensure agents are not soliciting or inviting an offer of rent that is higher than the advertised price.

NSW Fair Trading has stated the following on the matter:

Rent bidding compliance program

Commencing late March, NSW Fair Trading is escalating their enforcement approach for rental bidding requirements. This follows instances of non-compliance that were identified in late December 2022.

NSW Fair Trading inspectors will be:

reviewing online residential rental advertisements
attending open homes to observe agents interacting with potential tenants on price. This is to ensure agents are not soliciting or inviting an offer of rent that is higher than the advertised price.

Agents should check their operations to make sure they meet the legal requirements. A breach of the requirements may result in an on-the-spot $550 fine being issued to the agent, or $1,100 fine to a corporation.

The new rules that started from 17 December 2022 banned solicited rent bids and introduced changes to how agents can advertise rental properties.

NSW Fair Trading has engaged with agents and provided education information to help them comply.

More information
Visit the NSW Fair Trading website for more information on the rent bidding restrictions.