Agents are now prohibited from soliciting rent bidding.
From 17th December 2022, agents cannot solicit or invite an offer of rent that is higher than the advertised price for a residential rental property. Prospective tenants are still able to offer higher rents for a rental premises but only if they do it voluntarily and freely.
New advertisements for residential rental properties published on or after 17 December 2022, must also include a fixed price. They can no longer be advertised within a price range, or with text such as 'offers from' or 'by negotiation' or 'Contact Agent'.
The changes apply to licensed real estate agents who undertake leasing functions in relation to residential premises. The changes do not apply to landlords.
Properties that were advertised before 17 December and are still currently being advertised do not need to meet the new requirement to advertise at a fixed price.
The maximum penalty that a court can award for non-compliance is $11,000 for a corporation or $5,500 in any other case. A fine (Penalty Infringement Notice) may also be issued - $550 for an individual or $1,100 for a corporation.
NSW Fair Trading will work with real estate agents to ensure they are aware of the new rules. Initially, the emphasis will be on education.
Agencies need to have a policy and procedure in place for rent bidding.