Rent bidding ban to be imposed across NSW

By AMBER GRIFFIN

In an attempt to balance of interests of renters, landlords, and real estate agents, the New South Wales Government has rolled out significant changes to regulations under the Property and Stock Agents Act 2002.

Applying to all rental listings from Saturday the 17th of December, the regulations will outlaw rent bidding – an act allowing for renters to offer an agent or landlord above the advertised price of the property in attempt to sway the landlords decision to choose them as a tenant.

Banning rent bidding aims to “give more people security and certainty so they can plan for their future” NSW Premier Dominic Perrottet stated.

“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,” Perrottet said.

“An advertised rental fee should be just that and we will take action to ensure rental bidding is outlawed.”

With the regulation changes, real estate agents will be prohibited from prompting a potential tenant to offer an amount higher than that advertised for the property. Additionally, agents will not be able to advertise a property unless it specifies the rental rates of the property.

Minister for Fair Trading Victor Dominello believes the rental regulation changes consider the needs and interests of all stakeholders, including 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,” Dominello said.

Sydney rental affordability plummets

As more Sydneysiders join the lengthy waiting list for a rental property, concern for the affordability of the Sydney rental market grows. Sydney is currently the second most expensive rental market in Australia, with realestate.com.au confirming that the median weekly rental price for an apartment or unit with two bedrooms in Sydney’s CBD is $820.

Shelter NSW voices concerns over fine print of the ‘ban’

“While we were happy to see the NSW Government’s announcement of a ‘ban’ on rent bidding we now understand that it’s not as comprehensive as we first understood and hoped for.” Shelter NSW, Senior Policy Officer Cathy Callaghan told City Hub.

“The NSW Fair Trading Minister Victor Dominello has now confirmed that while real estate agents will be banned from asking renters to bid higher than a property’s listing price it will still allow applicants themselves to offer more.”

Shelter NSW CEO, John Engeler, spoke to 2GB radio about the practice of rent bidding, describing it as ‘grubby’.

“Our call is to the landlords of NSW. People looking for rental properties are desperate. Please don’t trade on that.”

“Just because the law will continue to allow you to accept higher bids doesn’t mean you have to encourage the practice” Engeler said.

The Greens have welcomed the governments focus on rent bidding ban.

“Rent bidding should absolutely be banned, but we don’t need an investigation to tell us what we already know – dodgy agents and landlords are exploiting and profiting from the rental crisis,” Greens MP Jenny Leong said.

“Conversations with people on the street, and endless stories in the news, show us just how bad the power imbalance between renters and their real estate agent or landlords has gotten.”

“The Greens welcome the government’s focus on banning rent bidding, but let’s not hide under the cover of an investigation when we know it’s a problem right now.

“Rent bidding must be banned alongside genuine protections for renters including ending no grounds evictions, freezing and controlling rents, and banning intrusive rental applications.”