But some believe the move will do little to ease the tough rental market, with Chambers Fleming Professionals Padstow Principal Todd Owsnett saying the problems lies with not having enough stock to offer to rent.
“The big problem is lack of housing,” he said.
“Real estate agents are only trying to get the best price for their clients who are battling booming interest rates.
“I doubt whether this new law will make much of a difference.”
Agreeing, Ronis Real Estate’s George Hourani says he feels for landlords who may not have the potential now to earn extra income to meet their mortgage requirements.
“We’ve never really seen rent bidding as an issue here in Canterbury Bankstown but of course, the rental market is obviously very competitive at the moment,” he said.
“If the move is going to create a level playing field for tenants, though, I’m all for it.”
L J Hooker Padstow Principal Lush Pillay says it is a good thing if it helps to stabilise the rental market.
“There’s not a lot of stock at the moment and that’s why tenants are competing,” he said.
“But the way to stop this problem is to increase the housing supply; build more homes, it’s as simple as that.”
Others fear there is nothing preventing the situation where landlords might accept, for example, six months rent in advance; whereby the wealthiest (or most desperate) renters will continue to have an advantage.
Landlords and agents who contravene the new rules will be subjected to fines of up to $5,500 for individuals and $11,000 for companies.
Ban ‘rent bids’ but agents say problem lack of stock
REAL estate agents and landlords in NSW are now banned from encouraging tenants to offer more money to secure a rental property after the NSW Government announced the ‘bidding’ practice had become an offence.