What NSW rent bidding changes means for tenants and landlords
From 17th December 2022 real estate agents in NSW are no longer allowed to solicit or invite offers for a rental property that are higher than the price advertised.
The aim, according to the NSW Government, is to assist prospective tenants secure a property in a tight rental market in a fair way.
Viviana Suarez, Head of Property Management at Cohen Farquharson, based in Double Bay, said the best and most reputable real estate agents in Sydney would already have been following many of the rules, but certainty for tenants is a good thing.
“It is a real estate agent’s job to secure the best price and the best tenant for their client, the landlord. There is so much more to securing the best tenant than just price. You are trusting someone with what is often a landlord’s biggest financial investment, so we take so much more into account than just ability to pay."
What are the changes if you’re applying for a property?
What do you need to know as a landlord?
Viviana Suarez added that it is more important than ever that landlords have open and honest conversations with their real estate agents to appropriately price their properties.
“Setting a realistic weekly rental price in consultation with a real estate agent will set you up to maximise your returns under this new regulation.
“If a tenant makes an offer higher than the listed price, the real estate agent will inform the landlord and make a recommendation about whether to accept the offer. However, the agent can no longer use that offer as leverage to solicit higher offers from other tenants, so it is vital work with an agent who knows their market in order to determine a pricing strategy.”
