Solicited rent bidding to be illegal in NSW
Written on the 21 December 2022
Property and Stock Agents Amendment (Solicited Rent Bidding) Regulation 2022
From 17 December 2022, the rules of conduct have been updated to prohibit agents from soliciting rent bidding.
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. However, agents can accept a higher rental offer if it is made freely and voluntarily by a prospective tenant.
To support this change, any new advertisements for residential rental properties published on or after 17 December must include a fixed price. They can no longer be advertised within a price range, or with text like 'offers from' or 'by negotiation'.
Properties that were advertised before 17 December and are still currently being advertised do not need to meet this new requirement.
Signs used on or near the property which advertise that it is available for rent are not required to list a price.
These changes only apply to leasing of residential rental property.
The penalty for non-compliance with a rule of conduct applies. That is, 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.