Renters in New South Wales (NSW) have successfully reclaimed nearly $50,000 following unlawful charges for background checks associated with rental applications. Previously, some online platforms solicited fees ranging from $25 to $40 from applicants under the false premise that these payments would enhance their likelihood of securing a rental property.
In response to these practices, the NSW Parliament amended rental legislation in October, prohibiting landlords from imposing such fees on applicants. Despite this change, a recent investigation by the rental task force revealed that one online rental platform continued to charge applicants for background checks, resulting in 2,372 individuals being billed $19.95 each. This led to a total of $47,321 being collected improperly.
Following the investigation, the platform communicated with the task force, issued refunds to the affected applicants, disabled the background check feature on its site, and committed to ongoing reviews for compliance with the new regulations. The platform attributed the oversight to a system error that permitted the background check option to remain active despite the recent legislative updates.
NSW Fair Trading has encouraged any renters who were charged for background checks to submit complaints online. With approximately 2.3 million individuals renting in NSW, the rental task force was established to combat unscrupulous landlord behaviour and enhance protections for tenants.
In a parallel issue, Fair Trading is collaborating with NSW Police to investigate incidents of misappropriated trust funds relating to rental bonds. Recently, real estate agent Vanessa Nguyen was sentenced to a 15-month intensive correction order after being found guilty of dishonestly taking over $100,000 from NSW Rental Bonds and her agency’s trust account. She faced charges of making 25 fraudulent rental bond claims and transferring funds to her personal account.
Fair Trading Minister Anoulack Chanthivong has underscored the seriousness of these transgressions, asserting that the rigorous penalties against rogue real estate agents send a clear message: misconduct in the rental market will be thoroughly investigated, and offenders will face significant legal repercussions.