But some believe the move will do little to ease the tough rental market, with Laing & Simmons Auburn Lidcombe Principal Themy Panagiotidis fearing the move could drive up rents.
“What’s to stop landlords and agents advertising properties for more than the market rate to start with,” he said.
“How can they even make this move when they keep putting up interest rates?
“There is no legislation to stop tenants offering more anyway to secure the property they want.
“What they really need to do is build more housing.”
However Rodi Realty’s Brett Dubos believes the Government shouldn’t be criticised for doing what they can to help the over-heated rental market.
“I think it’s a great move,” he said.
“Every property should be advertised at the agreed, set price.
“Bidding puts enormous stress on tenants.”
Phillip Daidone Realty’s Joseph Daidone says bidding wars are not common in Cumberland so he isn’t worried about the changes to the law.
“We certainly haven’t had to go down that path because there is enough stock here,” he said.
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.
New ban ‘a great move’ but could drive up rents
REAL estate agents and landlords 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.