NSW government eliminates 99 per cent of rent bidding

Dodgy landlords and real estate agents trying to bully tenants into paying a higher rate have all but been eliminated from one state.

The NSW government says solicited rent bidding has been virtually stamped out following a host of reforms first announced in 2023.

The inaugural Bidding in the NSW Rental Market report shows rent bidding has all but disappeared, as 99 per cent of landlords and real estate agents have stopped the practice.

Under the government’s reforms, solicited rent bidding – when agents, landlords or platforms invite or pressure prospective tenants to offer more than the advertised rent, pushing the prices up for an already hot market – has been outlawed.

The NSW government says it has removed rent bidding. Picture: NewsWire/ David Crosling

Prior to the announcement, non-fixed price listings made up 17 per cent of the market.

NSW rental commissioner Trina Jones said the report showed the reforms had worked.

“Importantly, our analysis reveals that broader rent bidding practices, while present during periods of market pressure, have not been a significant driver of rental price inflation,” she said.

The report also found underbidding – where tenants pay less than the advertised price – is up 36 per cent between March and August 2024.

PropTrack data shows rents are still rising significantly in Sydney, up 9.5 per cent in the 12 months until January 2025.

NSW Premier Chris Minns’ government passed new laws to help renters. Picture: NewsWire / Monique Harmer

The changes come after the Minns government passed the Residential Tenancies Amendment Bill on October 24 2024, with the aim of supporting renters.

Under the amendment, the government banned no-grounds evictions, limited rent increases to one per year, made it easier to have pets, improved laws that governed fee-free rent payment options and prohibited fees for background checks.

In a historic rental reform, the state government will offer more than 2.2 million renters across the state better housing security and landlords “more clarity” on ending a lease.

The new laws will make it harder for property owners to evict renters and easier for renters to have pets at home.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said NSW Fair Trading and the government were working together to protect tenants and create a more sustainable rental market.

“That’s why the government is committed to supporting the rental market, so tenants see it as one that offers security and quality, while providers view it as one they can invest in with certainty and viability,” Mr Chanthivong said.

“The suite of rental reforms that the Minns Labor government is implementing will give renters greater stability and security when renting a home while providing certainty for landlords and agents.”

Originally published as NSW government eliminates 99 per cent of rent bidding