Navigating the rental market can be a daunting task, especially when faced with soaring rents that climb higher every year.

A recent survey highlighted this pinch as rent prices rose to $3,600 higher than last year.

Yet, amidst the financial strain, there's a silver lining for some tenants wronged by illegal practices.

A group of tenants in New South Wales received a collective refund of almost $50,000 after being unlawfully charged for background checks during their applications.

This practice, once encouraged by some online rental platforms, involved fees ranging from $25 to $40.

These background checks offered a misleading promise that it would boost an applicant's chances of securing a rental property.

Renters in NSW should not pay for background checks anymore. Image Credit: Pexels/Ivan Samkov

However, the tide turned last October when the state parliament passed changes to rental laws.

These changes made it illegal for landlords to pass the cost of background checks on applicants.

Despite this legislative change, a recent probe by the rental task force discovered that an online rental application platform continued to sell these checks to unsuspecting renters.

The investigation revealed that 2,372 rental applicants were charged $19.95 each for searches of public databases and the National Tenancy Database.

These charges totalled to $47,321.

In response to the findings, the rental task force engaged with the platform.

The said platform voluntarily refunded affected customers, turned off the background check feature on its website, and committed to regular reviews to ensure compliance.

The platform attributed the continued charges to a system error that kept the background check option active on its website.

NSW Fair Trading has since urged renters who have been charged for a background check to complain online.

These renters are then entitled to a refund.

With 2.3 million people renting properties in NSW, the rental task force's mission is to clamp down on unscrupulous landlords and unfair practices.

NSW Fair Trading has been collaborating with NSW Police to investigate cases of misappropriated trust funds or rental bonds.

Last 7 March, real estate agent Vanessa Nguyen was found to have dishonestly taken more than $100,000 from NSW Rental Bonds and a trust account at Ray White Canley Heights.

Nguyen allegedly made 25 rental bond claims and transferred funds from the agency's trust account into her personal account.

Nguyen has since been sentenced to a 15-month intensive correction order.

She was also required to complete 180 hours of community service and was ordered to pay $80,866.20 in compensation.

Fair Trading Minister Anoulack Chanthivong emphasised that the government has been taking a firm stance against such illegal activities.

'The significant prosecutions and punishments we are seeing for real estate agents also show that the message is clear – if you are doing the wrong thing, the rental task force will catch you, and serious legal consequences will follow,' Minister Chanthivong stated.

This update should be a reminder to stay vigilant and informed about your rights as a tenant.

If you suspect you've been charged for an illegal fee, don't hesitate to reach out to NSW Fair Trading.

You could be due for a refund, and every dollar counts in these challenging times.

Key Takeaways

• Renters in New South Wales have received refunds totalling nearly $50,000 after being illegally charged for background checks.
• Changes to rental laws in October have made it illegal for NSW landlords to charge applicants for background checks.
• An online rental application platform continued to sell background checks to applicants and has since taken action to refund affected customers.
• NSW Fair Trading and the rental task force have been cracking down on dodgy landlord practices and urging renters who've been unjustly charged for background checks to lodge complaints.

Have you or someone you know been affected by similar illegal rental practices? Share your experiences in the comments below, and let's help each other stay protected against unfair practices.

 

[mylittletibbies]

I know of two people who did not receive their pet bond back which was held by the agent for fumigating the property.

Neither of these people had their dogs inside the house. I would love to know if this is actually legal.
Are they fumigating backyards these days???

 

[darrellh]

There are such disgusting lowlifes who will knowingly take advantage of people who just can't afford it. It makes my blood boil.

 

[mylittletibbies]

I know of two people who did not receive their pet bond back which was held by the agent for fumigating the property.

Neither of these people had their dogs inside the house. I would love to know if this is actually legal.
Are they fumigating backyards these days???

Just googled this and apparently it is quite legal. I think that is a bit over the top.
However, as an ex landlord I must admit we had tenants we allowed to have one large rottweiller on the understanding that it was not to be inside.
They ended up with three. Carpets were pissed on, curtains and flywires were ripped and the backyard ended up looking like a poo Farm.
I don't believe that these new laws have done tenants any favors by forcing owners to allow pets on their property. There is no way of knowing whether the tenant is sticking to the agreement or not and this is one of the reasons I would never have a rental property again and I know other people who have sold their rental properties for the same reason . I know there's some pretty crappy landlords out there but it is the owners property and they should be able to have a say in what is happening on their own property.
Unfortunately bad tenants make problems for good tenants

 

[Clancieblue]

Just googled this and apparently it is quite legal. I think that is a bit over the top.
However, as an ex landlord I must admit we had tenants we allowed to have one large rottweiller on the understanding that it was not to be inside.
They ended up with three. Carpets were pissed on, curtains and flywires were ripped and the backyard ended up looking like a poo Farm.
I don't believe that these new laws have done tenants any favors by forcing owners to allow pets on their property. There is no way of knowing whether the tenant is sticking to the agreement or not and this is one of the reasons I would never have a rental property again and I know other people who have sold their rental properties for the same reason . I know there's some pretty crappy landlords out there but it is the owners property and they should be able to have a say in what is happening on their own property.
Unfortunately bad tenants make problems for good tenants

I had beer cans and bottles buried under piles of grass cuttings. (plenty of appropriate bins available) Ash from the log fire thrown all over the back lawn. Fly wire ripped glass door scratched to bits, shelves in the linen cupboard used as a ladder to access hole cut above to hide drugs. Wallpaper ripped of the walls and holes punched in internal doors. Seemed like a very nice couple originally.

 

[Cheezil]

Just googled this and apparently it is quite legal. I think that is a bit over the top.
However, as an ex landlord I must admit we had tenants we allowed to have one large rottweiller on the understanding that it was not to be inside.
They ended up with three. Carpets were pissed on, curtains and flywires were ripped and the backyard ended up looking like a poo Farm.
I don't believe that these new laws have done tenants any favors by forcing owners to allow pets on their property. There is no way of knowing whether the tenant is sticking to the agreement or not and this is one of the reasons I would never have a rental property again and I know other people who have sold their rental properties for the same reason . I know there's some pretty crappy landlords out there but it is the owners property and they should be able to have a say in what is happening on their own property.
Unfortunately bad tenants make problems for good tenants

Agree, would never rent mine out either - add to that the land tax (Vic)

 

[deni67]

I know of two people who did not receive their pet bond back which was held by the agent for fumigating the property.

Neither of these people had their dogs inside the house. I would love to know if this is actually legal.
Are they fumigating backyards these days???

As far as I know landlords are not allowed to ask for pet bonds now, nor knock back a prospective renter because they have pets, only under certain circumstances can they say no.

 

[mylittletibbies]

As far as I know landlords are not allowed to ask for pet bonds now, nor knock back a prospective renter because they have pets, only under certain circumstances can they say no.

Well they can't stop you from not accepting an application if the tenant has pets, if you don't want to.
There's plenty of applications for tenancies these days, you just choose one who doesn't.
I don't intend to ever have a rental property again. But if I did and was forced to allow a pet after they had moved in they would find their lease would not be renewed.
I've never had.a tenant with a pet who stuck to the conditions of their lease.
They either let them inside, have more
pets than agreed on, don't clean up the yard everyday. etc. etc.
It's no wonder more and more investors
are getting out of the property market.