NSW Fair Trading puts rental open homes and agency files under scrutiny

Real estate agencies across New South Wales are facing continued regulatory scrutiny as Fair Trading prioritises rental law compliance, with inspectors able to examine practices at open homes and review agency records to identify breaches.

NSW Fair Trading has placed rental law compliance among its enforcement priorities for 2026–27, maintaining pressure on real estate agents and landlords to demonstrate that they are meeting their obligations under the state's tenancy laws.

The regulator's latest priorities focus on the implementation of rental reforms and ensuring rental properties are safe, habitable and properly maintained.

For property managers and agency principals, compliance extends beyond the paperwork completed when a tenancy begins.

From conversations with prospective tenants during rental inspections to the records maintained within agency offices, Fair Trading has the authority to investigate whether businesses are meeting their legal responsibilities.

The regulator has previously conducted undercover rental open-home inspections and continues to undertake audits, investigations and targeted compliance activities through its dedicated Rental Taskforce.

Inspectors can attend rental open homes

The presence of Fair Trading officers at rental inspections is not a new development.

During a compliance operation in March and April 2023, inspectors conducted 76 undercover inspections at open homes and reviewed more than 1,100 online rental advertisements.

The operation followed the introduction of restrictions prohibiting agents and landlords from soliciting higher rental offers from prospective tenants.

Inspectors examined whether advertised rental prices complied with the legislation and observed conversations between agents and prospective renters.

The distinction between solicited and voluntary rent bidding remains particularly important.

Under NSW law, residential rental advertisements must display a fixed rental price. Properties cannot be advertised using a price range or expressions such as "offers from" or "by negotiation".

Agents and landlords are prohibited from inviting applicants to offer more than the advertised rent.

However, a prospective tenant may independently offer a higher amount, provided the offer is genuinely voluntary and has not been solicited.

An agent may accept such an offer.

Fair Trading's guidance also makes clear that if a prospective tenant asks whether they should offer more, the agent should explain that they cannot solicit a higher offer and that the applicant must make their own decision.

The restrictions also apply to third-party rental application platforms.

For agencies, the practical implication is that compliance cannot be measured solely by whether an advertisement displays the correct figure.

What an agent says during an inspection, or communicates to an applicant afterwards, can be equally important.

Agency records can also be examined

Fair Trading's investigative powers extend into the records and business practices of property agencies.

Under its regulatory powers, investigators may inspect business premises, request information and examine or copy relevant records when investigating possible breaches.

Inspections may be arranged in advance or conducted without prior notification, subject to the legal requirements governing those powers.

That means an agency's compliance obligations are not necessarily satisfied simply because its advertisements and tenancy agreements appear correct.

The supporting documentation may also be important.

Depending on the nature of an investigation, relevant records could include rental ledgers, tenancy agreements, bond transactions, termination notices, correspondence with landlords and tenants, and documentation relating to repairs and maintenance.

For example, a review involving an allegedly unlawful termination may require examination of the reason given to the tenant, supporting documents and whether the property was subsequently advertised for lease during a restricted period.

Where maintenance is involved, correspondence, repair requests and records showing the steps taken to address an issue may help establish whether the agent and landlord have met their responsibilities.

Fair Trading has not published a new universal checklist of rental agency files that will be examined during a specific forthcoming blitz.

Nevertheless, its existing investigative powers make accurate and accessible record-keeping an important part of agency compliance.

Rental reforms remain a priority

On 27 October 2026, NSW Fair Trading published its compliance and enforcement priorities for the financial year.

The rental sector was identified as a key focus, with two principal objectives: implementing rental reforms fairly and promoting safe homes.

The regulator is monitoring compliance with reforms introduced progressively since October 2024.

These include restricting rent increases to once in a 12-month period, prohibiting no-grounds terminations, strengthening renters' ability to keep pets and ensuring tenants have access to fee-free rental payment methods.

From 19 May 2025, landlords have been required to provide a legally valid reason when ending a tenancy, with supporting documentation required in certain circumstances.

The reforms also introduced exclusion periods preventing properties from being re-let for specified periods following certain landlord-initiated terminations, unless an exemption applies.

Additional changes commenced during 2026.

From 2 March, Centrepay became a required rental payment option.

An optional Smart Rental Bonds scheme was introduced in August, allowing eligible tenants to transfer an existing bond when moving between rental properties.

Further pet-related protections commenced on 2 October, allowing tenants who apply for consent within seven days of entering a tenancy to keep the pet at the property while their application is considered.

These requirements give agencies a growing range of obligations to manage, particularly where older procedures, leasing documents or property management systems have not been updated.

Enforcement has already resulted in substantial penalties

Fair Trading's compliance activities have produced measurable enforcement outcomes.

In September 2025, the NSW Government reported that the Rental Taskforce had conducted 300 property inspections to assess minimum housing standards, commenced more than 300 investigations and issued more than 200 penalty notices worth almost $240,000.

It had also recovered more than $166,000 in unlawful fees for renters.

Further investigations into prohibited background-check fees and dishonoured-payment charges led to additional refunds.

In May 2026, the Government reported that almost $180,000 had been returned to renters affected by unlawful charges.

One investigation identified 2,071 dishonoured-payment charges imposed on 795 tenants, resulting in a voluntary enforceable undertaking requiring refunds exceeding $124,000.

The regulator has also expanded its use of technology to identify potentially unlawful re-letting.

A data-matching system monitors rental advertisements against tenancy and bond information to identify properties that may have been placed back on the market during exclusion periods.

By May 2026, the system had identified approximately 600 properties for potential breaches, resulting in 13 formal warnings and 12 fines totalling $50,050.

Those figures demonstrate that enforcement is not confined to complaints made by individual renters.

Fair Trading is also using information already available through rental advertising platforms and government systems to identify conduct requiring further investigation.

Property standards and maintenance under the spotlight

Beyond leasing practices, the condition of rental properties remains a central regulatory concern.

NSW rental premises must meet minimum habitability standards, including requirements relating to structural soundness, lighting, ventilation, electricity or gas, plumbing, water supply and bathroom facilities.

Fair Trading has identified repairs and maintenance as an enforcement priority because unresolved problems can directly affect tenants' safety and living conditions.

For property management businesses, this places additional importance on the handling of repair requests.

An agency may receive a maintenance request promptly but still encounter delays obtaining landlord approval, arranging contractors or coordinating access.

The existence of a delay does not, by itself, establish that the law has been breached.

However, the circumstances surrounding that delay, including the nature and urgency of the repair and the actions taken, can be important in determining whether obligations have been met.

Agencies should therefore be able to demonstrate how maintenance requests are assessed, escalated and progressed, particularly where repairs affect a property's safety or habitability.

Further changes are approaching in 2027

NSW has also passed legislation aimed at strengthening protections for applicants' and tenants' personal information.

The reforms introduce additional requirements concerning rental applications, collection of identification documents, personal information and advertising disclosures.

Most of these changes are expected to commence in early 2027, following the finalisation of supporting regulations.

They are separate from the obligations already operating under current rental laws, but will require agencies to review how they collect, retain and manage information supplied by prospective tenants.

The growing importance of tenant privacy adds another consideration for principals reviewing their leasing and administrative procedures.

What agencies should be doing now

For NSW real estate businesses, the regulator's priorities provide a clear opportunity to review existing procedures before compliance issues arise.

Rental advertising should comply with fixed-price and other disclosure requirements, while leasing staff should understand the distinction between prohibited rent bidding and unsolicited offers.

Agency principals should also ensure that termination notices, rental records, bond transactions, maintenance requests and relevant correspondence are properly maintained and accessible.

Particular attention should be given to whether the agency's systems and forms reflect reforms that have already commenced, rather than relying on procedures developed before the changes.

Fair Trading Commissioner Natasha Mann acknowledged in October that most businesses, landlords and agents comply with their obligations.

The regulator's stated objective is to address conduct that causes significant harm, undermines consumer confidence or produces unfair outcomes.

For compliant agencies, effective enforcement can also help ensure they are not competing against operators prepared to disregard the rules.

But the broader message for property managers is straightforward.

Compliance is no longer something that can be demonstrated simply by pointing to an office policy or a training manual.

An agency needs to be able to show that its procedures are followed in practice, from the conversations held at rental inspections to the records maintained after a tenant moves in.

With rental reforms and safe homes remaining priorities throughout 2026–27, those everyday practices are likely to remain firmly within Fair Trading's sights.