As of December 2022, rent bidding for residential property is now banned in NSW under the Property and Stock Agents Act 2002. Under the new rules, agents are not allowed to solicit rental bids, which is essentially when an agent invites prospective tenants to increase their rental offer to a price higher than the advertised price for the property. Instead, agents are now required to advertise a fixed rental price on a new residential property listing, as opposed to giving a price range or using phrases such as ‘offers from’ or ‘by negotiation.’
These rules apply to agents only, not landlords. However, whilst rent bidding is now illegal, this does not mean that prospective tenants are not allowed to offer higher rental prices on their own accord. In the current rental crisis, it has been common for prospective tenants to freely and voluntarily offer higher amounts to increase their chance of securing a lease.
NSW Fair Trading inspectors will be reviewing online residential rental advertisements and attending open homes to observe agents interacting with potential tenants on price. It is crucial for agents to check their operations to ensure they are meeting the legal requirements. For more information, please visit here.