Secret rental bidding banned from this weekend

It will become slightly easier to rent a home in Sydney from Saturday.

It will become slightly easier to rent a home in Sydney from Saturday.

The NSW Government will put an end to secret "rental bidding" as soon as this weekend amidst a highly competitive rental market in Sydney.

The auction-like practice of agents soliciting renters to bid at a higher price to secure the property will be illegal for new listings from Saturday.

There are similar regulations already in place in Victoria, Queensland, and Tasmania.

It comes after months of reports about prospective tenants going up against up to 100 other renters at viewings in Sydney's inner suburbs.

Premier Dominic Perrottet. Picture: NewsWire / Monique Harmer

At a press conference on Monday, Premier Dominic Perrottet said "real estate agents will no longer be able to enter into bidding wars with prospective tenants".

Yet, renters can still raise their offer on a property of their own volition.

---

What will be outlawed:

• Real estate agents cannot encourage renters to bid a higher amount than that advertised for the property.
• Agents can no longer advertise a property unless it specifies the rent payable for that property.

---

This will include a prohibition on rental property advertised with for example:
🔹“ by negotiation”; 🔹“inviting offers”; 🔹a “price range”.

I will provide more details around the regulation and timeline very soon - but we are aiming to have in place before Christmas 🙏

— Victor Dominello MP (@VictorDominello) December 11, 2022

"The rental market is tight so putting an end to auctions in the rental market is a very important step the NSW Government is making today. It will come into effect this Saturday," Perrottet continued.

"The set price will be the price. We want to make sure tenants across NSW have that certainty and know when they're looking for a home, the rental price that is advertised is the rental price they will have to pay.

"It’s time to put an end to this practice and give more people security and certainty so they can plan for their future."

NSW Premier Dominic Perrottet. Picture: NCA NewsWire / David Swift

NSW Fair Trading Minister Victor Dominello said the department will enforce the action by checking advertised properties for a fixed price, and said complaints could be made to NSW Fair Trading if tenants were encouraged to increase their bid.

It comes after an investigation by The Daily Telegraph revealed 80% of real estate agents in Sydney's east and inner west were encouraging rent bidding.

NSW Labor Leader Chris Minns. Picture: NCA NewsWire / Damian Shaw

State opposition leader Chris Minns will call for even stronger laws if the Labor party is elected in March, he said, including:

• Pushing for agents to disclose to applicants whether a higher bid has been lodged.
• Introducing a portable bond scheme where renters can transfer a bond from one landlord to another when they move homes.
• Establishing a rental commissioner to "ensure fairness in the rental market" and legislate against no-grounds evictions, for example.