NSW rent bidding loophole to be closed as Chris Minns makes changes for renters

The NSW government will eliminate a ‘loophole’ for tenancy bids and give more protection to tenants amid a statewide crisis in a bill due to be introduced on Wednesday.

The legislation requires real estate agents and landlords to notify all applicants if they receive an offer in excess of the advertised price on rental properties and bans solicited rental offers from including owners and third parties.

NSW Minister for Better Regulation and Fair Trade, Anoulack Chanthivong, said this would close a loophole that previously banned only estate agents from the law.

“Estate agents are already prohibited from charging potential tenants more rent than the property is advertised for, but landlords and third parties are not, so we are closing that loophole,” he said.

Initial steps will also be taken to create a transferable bond arrangement that will transfer the bond from one property to another, significantly reducing out-of-pocket costs for applicants.

Premier Chris Minns said it was a ‘sensible cost-of-living measure to ease the pressure on the more than 30 per cent of people in NSW who are currently renting’.

“Anyone who rents in Sydney knows how exciting and challenging the process of finding suitable accommodation can be, not to mention the significant costs associated with moving,” he said.

“These changes will create a fairer rental regime in this state by providing greater security and flexibility to tenants and owners alike.”

The legislation targets some of the election promises NSW Labor made to tenants prior to winning the government. Additional reforms to end landless evictions, relaxation of rules around pet ownership in rental properties, and data protection for tenants are also underway.

The government is also in the process of hiring a rent commissioner to advocate for tenants.

However, the government has ruled out rent freezes despite Sydney rents rising 25.3 per cent over the past 12 months and 7.1 per cent in the last quarter alone.

Agents and landlords must not make unsolicited rental offers and must notify all parties if a higher offer is made under the proposed laws (image NCA Newswire)

The legislation targets some of NSW Labor’s election pledges to support tenants ahead of winning the government (image NCA Newswire)

SQM research found two-bedroom units had the most high prices, with rents rising by 30 percent in the last 12 months to May 4. Homes reported an increase of 21.1 percent.

The vacancy rate has also fallen to the lowest level in nine years.

Peak body for agents, the Real Estate Institute of NSW, reports that vacancy rates in Sydney fell to 1.3 per cent in March and were only marginally better in the regions of Hunter (1.6 per cent) and Illawarra (1.8 per cent).

Mr Chanthivong said the proposed measures would ease pressure and increase rental stock.

“The message in the last election was clear: tenants in NSW did not feel their voices were being heard,” he said.

“Our focus is on striking the right balance by implementing responsible reforms that reduce stress and pressure for tenants, while also looking at ways to bring new offerings to market.”

Sydney tenants battle historic low vacancy rates and rent hikes (image NCA Newswire)

Housing and Homelessness Secretary Rose Jackson said the updated and modernized laws were needed as more people became lifelong renters.

“There is a link between our unfair rental laws and increasing housing insecurity,” she said.

“We know our current tenancy laws aren’t working. This is one step closer to improving tenants’ rights for the people of NSW.”