New laws prevent landlords slugging renters on background check charges

NSW landlords and real estate agents will no longer be allowed to slug renters with extra costs under strict new laws. Find out what charges will be banned.

Landlords and real estate agents will no longer be allowed to slug renters with charges for background checks as the Minns government introduces strict new laws.

In a bill to be introduced to parliament this week the only payments a renter can be charged for upon application is the deposit, bond, rent for the property and any fee for registration of a lease longer than three years.

Currently some online rental property application apps charge renters up to $30 to cover the costs of their own background checks, with the promise that they’ll increase an applicant’s chance of securing a home.

This is in addition to the detailed information potential renters need to provide the agents while applying for a property.

Premier Chris Minns said it was not right for renters to be coerced into paying for their own background checks. Picture: NewsWire / Gaye Gerard

Under the proposed laws, landlords will still be able to check third party tenant databases, but cannot charge potential tenants. Databases contain information on tenants who have left a property and owe money or if they have had their rental agreement terminated by the Tribunal because they have done something wrong.

The proposed laws are part of the NSW government’s package of rental reforms. The Daily Telegraph revealed last month that landlords would be banned from evicting renters without a reasonable excuse from next year.

Premier Chris Minns said it was not right for renters to be coerced into paying for their own background checks.

“With the rental market so competitive, many renters have felt pressured into paying for these checks,” he said.

“Owners will still be able to make sure their prospective tenant hasn’t done the wrong thing at a previous rental but you shouldn’t have to pay for your own background checks just to apply for a place.”

Originally published as New laws prevent landlords slugging renters on background check charges