Fair Trading officers go undercover to crack down on rent bidding

Undercover Fair Trading officers will pose as renters at home inspections in a bid to crack down on real estate agents trying to circumvent a ban on rent bidding.

Undercover officers from NSW Fair Trading will pose as renters at home inspections in a bid to crack down on real estate agents trying to circumvent a ban on asking prospective tenants to jack up rental bids.

The Daily Telegraph can reveal that hundreds of real estate agents have been identified as potentially being in breach of the government’s tough rules on rental bidding announced by Premier Dominic Perrottet last year.

Almost 1000 rental advertisements have also been identified as possibly flouting the rules.

In addition to the crackdown on agents doing the wrong thing, Mr Perrottet will on Friday announce that if re-elected the Coalition will implement a suite of measures to help renters, including the option of entering a three or five-year standard lease agreement to improve the uptake of long-term tenancies.

The Coalition would also extend notice periods for the end of fixed-term leases from 30 to 45 days.

Mr Perrottet is also adopting a range of measures promised by Labor leader Chris Minns.

Dominic Perrottet is set to announce further protection for renters.

Regardless of who wins, no-fault evictions will be scrapped. Both parties have promised a “reasonable grounds” model for evictions during periodic tenancies.

The Coalition has also adopted a Labor policy allowing renters to move their bonds from one property to another, which will save renters from paying a large lump sum for a bond on a new home while waiting to have their bond refunded after leaving a property.

“We are supporting renters to get into housing in a fairer way, without stressful bidding wars where people get pushed beyond their comfort levels,” Mr Perrottet said. 

“Our ban on solicited rent bidding is already improving affordability for those looking for rentals.”

Since solicited rent bidding was banned last year, more than 300 agents have been found to have potentially breached the rules. All have been given warning notices.

NSW Fair Trading will now escalate to an enforcement approach for any noncompliance. Breaches may result in $550 fines being issued to agents and $1100 fines to corporations.

Almost 1000 advertisements have also potentially fallen foul of the rent bidding ban by using terms like “offers from” in a bid to get higher rents.

In Western Sydney, these advertisements were found most frequently in Rhodes and Blacktown. The suburbs of Concord, Haberfield, and Parramatta are all hot spots for complaints from potential renters to Fair Trading.

Fair Trading Minister Victor Dominello said the Coalition’s election pledge built on the rules Mr Perrottet imposed last year.

“Whether you are a university student, a young family or retiree, these reforms will strengthen the rights of renters,” Mr Dominello said.

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