The New South Wales government has laid out changes to regulations under the Property and Stock Agents Act 2002 that will make rent bidding practice illegal.
Premier Dominic Perrottet said banning rent bidding is crucial to improving affordability of rental accommodations amid high cost of living pressures.
“The search for a rental property is tough enough without it turning into a bidding war that pushes people beyond their comfort level,” he said.
“An advertised rental fee should be just that and we will take action to ensure rental bidding is outlawed.”
The new regulations will apply to all new listings starting 17 December 2022.
Minister for Fair Trading Victor Dominello said the changes to regulations takes into consideration the balance of interests of renters, landlords, and real estate agents.
“It can be very distressing for prospective tenants who have submitted a rental application only to be told to increase their offer to improve their prospects of securing a property,” he said.
With the changes, agents will be prohibited from inducing a prospective tenant to offer an amount higher than that advertised for the property.
“Further, real estate agents cannot advertise a property unless it specifies the rent payable for the property,” Minister Dominello said.
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Photo by kanchanachitkhamma on Canva.
