NSW will make asking renters to pay for background checks illegal
Renters in New South Wales will no longer be slugged with the cost of applying for their own background checks under proposed new laws.
The Minns government said it planned to introduce the new legislation in response to complaints from renters about being pressured into paying for a background check while applying for a rental property.
"With the rental market so competitive, many renters have felt pressured into paying for these checks," Premier Chris Minns said.
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Background check fees for renters will be banned under legislative changes in NSW. Domain: Peter Rae
Some online rental property application apps ask renters to pay between $25–$30 to cover the cost of their own background checks.
While the charges are "optional" they often come with the promise that they will increase an applicant's chances of securing a home.
The legislative changes will make it clear renters can only be charged for a deposit, rental bond, rent or registration fees for a lease longer than three years.
Landlords will still have the right to check or make reports to third-party tenancy databases, but it must not come at the renter's expense.
"You shouldn't have to pay for your own background checks just to apply for a place," Minns said.
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Tenants can be listed on a renter database, otherwise known as a "blacklist" for two reasons, if they have left the property and owe money, or the tribunal has made an order to terminate the agreement because the tenant has done the wrong thing.
The Minns Labor Government will change the law to stop renters being slugged with charges for background checks when they're applying for a rental property.
There are 2.2 million renters in NSW, and they're increasingly being asked to pay for their own background checks just to apply for a home.
At the moment, some online rental property application apps encourage renters to pay between $25–$30 to cover the cost of their own background checks, on top of providing detailed information to the leasing agent.
These 'optional' charges often come with the promise that they'll increase an applicant's chances of securing a home.
The changes are part of a NSW rental reform package from the Minns government which will include ending no-grounds evictions and developing Australia's first portable rental bonds scheme, which will allow renters to transfer their bond to a new property.
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