Landlords, agents on notice as NSW Government moves to ban rental photoshopping

Agents and landlords may soon be banned from using digital tools to alter photos that ‘mislead’ potential renters into applying for ‘unsuitable’ properties.

Before and after images of properties being listed for sale or rent (and shared on Facebook). Photoshopping real estate images will soon be under new laws. Picture: Supplied

Altered images of homes and units being advertised for rent will have to contain a mandatory disclosure declaring the alteration under new laws introduced into state parliament to stop renters being misled.

The move is part of a package of measures contained in the amended residential tenancies bill to give greater clarity to landlords, renters and property platforms and better protect the privacy of renters.

Altering images of properties to make them more attractive to renters has become commonplace, with changes involving mouldy grout being whitened up or stains removed from the carpet.

However, some alterations have become so far removed from the reality that angry renters and buyers have posting the “before” and “afters” on social media.

The unedited image of a property for rent in Seven Hills. Picture: Supplied

The same Seven Hills property, which was allegedly digitally altered while on the market. Picture: Supplied

The new laws are designed to capture practices – such as the use of AI-generated furniture to make a room look bigger than it is by showing a double bed in a bedroom that is only large enough to fit a single – or digitally modifying photos to obscure property damage.

The disclosure requirement is part of a raft of proposed changes contained in the Residential Tenancies (Protection of Personal Information) Amendment Bill 2025 to better protect renters.

The laws will also stop the unnecessary collection of extra personal information and help reduce the risk of identity theft and data breaches for both tenants, property technology platforms and agents, establishing a more consistent and efficient process for all parties.

Once the legislation passes, the government plans to consult with stakeholders to finalise a standard rental application form and the types of documents that can be collected to assess a rental application and when those documents need to be destroyed.

The reforms also cover the need for clear privacy rules for all landlords, agents, and rental platforms who handle personal information.

The new laws include penalties of up to $11,000 for individuals and $49,500 for corporations for agents and landlords who don’t adhere to the privacy rules.

Better Regulation and Fair Trading minister Anoulack Chanthivong said the new laws were designed to instil greater confidence in the sector, by stopping unnecessary data collection, limiting the risk of data breaches, “and give everyone greater confidence in how privacy is safeguarded throughout the rental process”.

On the use of altered images to advertise a rental, Mr Chanthivong told parliament this would no longer be allowed if the changes could “mislead or deceive” a prospective renter.

“For example, this would capture alterations such as those that remove undesirable infrastructure from the background, such as electricity towers or items that obscure views; digitally modifying photos to obscure property damage, such as water ingress stains or mould,” he said.

BEFORE: A patch of mould visible on a wall in a rental property. Picture: Supplied

AFTER: The mould has been removed by digital alteration. Photoshopping real estate images will soon be under new laws. Picture: Supplied

“Finding a suitable rental property can be time consuming and arduous.

“This requirement aims to reduce the risk of misleading and deceptive images leading an applicant to waste their time on unsuitable properties, or leading renters who do not have time to inspect into renting an unsuitable property.”

Fines for not disclosing deceptive imaging will be $5000 for individuals or $22,000 for agencies.