The vast majority of agents in NSW are doing the right thing and complying with rent bidding laws according to NSW Fair Trading.
NSW Fair Trading inspectors recently conducted 76 undercover inspections at open homes across the state and reviewed more than 1100 online rental advertisements.
The inspectors found 98 per cent of agents were complying with the ban on solicited rental bids.
New rules banning solicited rent bidding and changes to the way agents can advertise rental properties in NSW started in December 2022.
Real Estate Institute of New South Wales (REINSW), Chief Executive Officer, Tim McKibbin said the results showed the overwhelming majority of the industry is doing the right thing.
“I think any industry would be thrilled if the members of that industry were 98 per cent compliant,” Mr McKibbin said.
“Clearly the message has gotten out there, which is great.”
According to the results, only 51 agents were found to have non-compliant ads, with the most common breaches including instructions to ‘contact agent’ instead of listing a fixed rental price or using banned terms, such as ‘negotiable’, ‘price on application’ or ads listing a price range rather than a set rental price.
Mr McKibbin said the results reflected the fact that when the industry is properly advised of their obligations a high level of compliance is forthcoming.
“I know on some occasions when I’ve spoken to people about clients’ obligations, they’d been completely unaware of it,” he said.
“So when government does introduce regulatory controls, I think that unless there are resources applied to getting the message out there and actually teaching people what compliance looks like, then that, in many respects, is where things fall down.”
During the inspections, NSW Fair Trading inspectors also assessed the condition of rental premises, with eight of the 76 inspections reporting issues with mould.
Inspectors provided agents with guidance on how to resolve the mould issues before leasing the properties.
Mr McKibbin said that while the ban on rental bidding has been a success to help protect renters, more needed to be done to boost the supply of rental properties.
“I think all of these things, unfortunately, are symptomatic responses,” he said.
“There is only one solution here and that’s more property.
“And unfortunately, I’m just not seeing that commitment coming anywhere.
“So what we’re going to be seeing is more symptomatic responses.”
