If you’ve ever scrolled through real estate listings and thought, 'Wow, that place looks too good to be true,' you might be onto something.

In today’s digital age, artificial intelligence (AI) is making it easier than ever for real estate agents and landlords to present properties in their best light—sometimes a little too literally.

But what happens when that 'light' is actually hiding cracks, mould, or a bedroom that’s barely big enough for a single bed?


That’s the question at the heart of a new push for nationwide reforms, as the New South Wales (NSW) government takes a stand against misleading rental ads that use AI to gloss over faults and lure in unsuspecting renters.

And with about a third of NSW residents renting their homes, this issue could affect hundreds of thousands of Aussies, especially those of us who remember the days when a property ad meant a grainy photo in the local paper, not a digitally staged masterpiece.


AI has revolutionised the way properties are marketed. Virtual staging can turn an empty room into a designer’s dream, and photo editing can erase everything from peeling paint to water stains.

While these tools can help buyers and renters imagine the potential of a space, they can also be used to mislead.

Recent examples cited by the NSW government include listings where AI-generated furniture made a shoebox-sized bedroom look spacious enough for a double bed, or where digital touch-ups conveniently hid property damage.


For renters, this can mean wasted time, dashed hopes, and even pressure to make snap decisions in a fiercely competitive market.

In response, NSW has announced new legislation that will require real estate agents and landlords to disclose when images in rental ads have been altered to hide faults or mislead applicants.

If the bill passes, there will also be a standard rental application form, clarifying exactly what information can and cannot be collected from would-be tenants.

This is a big deal, considering the sheer amount of personal data being gathered.

The state government estimates that 187,000 pieces of identification information are collected weekly from NSW renters.

This can include everything from personal photos and social media accounts to, believe it or not, the number of tattoos you have!

The new laws aim to end unnecessary data collection, protecting renters’ privacy at a time when cyber breaches are alarmingly common—one is reported every six minutes in Australia, according to NSW rental commissioner Trina Jones.

The penalties for breaking these new rules are nothing to sneeze at. Corporations could face fines of up to $49,500 for privacy breaches, and $11,000 for individuals.

If misleading or altered photos aren’t disclosed, individuals could be fined $5,500, and businesses up to $22,000.

Tim McKibbin, CEO of the Real Estate Institute of NSW, acknowledges that while some personal information is necessary for rental transactions, it should be deleted when no longer needed.

He also agrees that uploading misleading photos is a 'false and misleading' practice.

Leo Patterson Ross, chief executive of the Tenants’ Union of NSW, says these protections shouldn’t stop at the state border.

'All renters in Australia should be granted these protections,' he argues, noting that while some states have made progress on standardising application processes, few have tackled the full range of issues—from data collection to the authenticity of advertising.

Ross suggests that landlords should also be required to disclose the age of photos, the property’s repair and compliance history, energy efficiency ratings, and provide up-to-date floor plans.

This would give renters a much clearer picture of what they’re actually signing up for—before they waste time (and petrol) on a disappointing inspection.

For many Australians over 60, renting is a reality—whether by choice or necessity.

And while experience brings wisdom, it doesn’t always protect you from the tricks of modern technology.

The last thing anyone needs is to be misled into a property that’s unsuitable, or to have their personal information floating around in cyberspace.

These reforms are a step towards restoring dignity and privacy to the rental process, ensuring that everyone—regardless of age—can make informed decisions about where they live.
Have you ever turned up to a rental inspection only to find the property looked nothing like the photos? Or have you been asked for personal information that seemed a bit over the top? We’d love to hear your stories and tips—share your experiences in the comments below.

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