With Christmas festivities taking priority, you may have missed the new regulations to help prospective tenants secure housing in a tight rental property market in a fair way, which came in at the end of December.

Rental bidding banned

Rental bidding is the practice where a landlord or agent invites, suggests or asks prospective tenants to increase their offer of rent for a property in order to secure it.

On 17 December 2022, the NSW Government made the practice of rent bidding illegal. This means a real estate agent or assistant real estate agent cannot solicit or invite an offer of rent that is higher than the advertised price for a residential rental property.

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’.

Minister for Fair Trading Victor Dominello said the reforms to regulations struck the right balance between the interests of renters, landlords and real estate agents.

“It can be very distressing for prospective tenants who have submitted a rental application only to be told to increase their offer to improve their prospects of securing a property,” Mr Dominello said.

What happens if a prospective tenant asks if they should offer a higher rent?

We are not permitted to solicit or invite a person to offer more than the advertised rent.

We can only advise that the tenant should make their own decision about the rent they wish to offer.

What happens if a prospective tenant asks what other applicants have offered?

As we are not permitted to solicit or invite a person to offer more than the advertised rent, we are not allowed tell what other prospective tenants may have offered.

Once again, we can only advise that the tenant should make their own decision about the rent they wish to offer.

Can a tenant offer a higher rent than the advertised price?

Under the new legislation, prospective tenants are able to offer higher rents for a rental premises if they do it voluntarily and freely.

For instance, if a prospective tenant approaches us and asks “Can I offer you $100 above the advertised fixed price for the property?”, we can reply, “Yes, you can. I will let the landlord know.”

This complies with the new rent bidding laws because the prospective tenant offered a higher rent amount without any prompting or suggestion from us and the offer is made voluntarily and freely.

For more details about this latest legislation, visit the NSW Fair Trading website.

We keep you legal

Property legislation and regulations are in place to protect both the landlord and the tenant, for many reasons; properties need to be safe to live in, and there needs to be a clear understanding of what is expected by both parties.

From smoke alarms requirements and pool safety to discrimination and animals, real estate and property management does come with a few rules and regulations.

We ensure all our properties adhere to the law and we act within the law. Professional development is a must, and our team regularly attend industry training sessions so we are on top of the latest legislation and regulations.

Keeping on top of the latest legislation, to ensure our landlords are acting within the law is just one of the many things we do.

As we know the market well, our rental return is kept in line with the current market, and we find quickly find and screen new tenants to avoid a vacant property.

Our motto is very simple, we treat every property as if it’s one of our own. And with many of our team having investment properties themselves, we always go the extra mile.

We’d love you to get in touch to tell you more, and also tell you how our property management services can make your life easier, and increase your return on investment.

With nearly 50 years of property management experience behind us, we’ve helped thousands of people realise their dreams through property and our aim is to make your life easier. Simply give us a ring on 02 4956 9777, send us an email to mail@newcastlepropertymanagement.com.au or pop into our Cardiff office for a chat.

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