New legislation aims to curb deceptive digital enhancements in rental listings
New South Wales is introducing new rental advertising and privacy laws in response to rising concerns over the use of artificial intelligence and digital manipulation in real estate listings.
Under legislation announced Sunday, real estate agents will be required to disclose when property images in rental listings have been digitally altered – such as hiding damage or exaggerating room size. The move comes amid complaints about the increasing use of AI tools that make properties appear more appealing than they are in reality.
The reforms aim to ensure greater transparency and restrict the collection of unnecessary personal information from prospective tenants.
“Renters are entitled to dignity and privacy when living in a rental property – and this extends to their personal information too,” said NSW Minister for Better Regulation and Fair Trading Anoulack Chanthivong. “These reforms are a very commonsense solution to a very real problem for people in the rental market.”
The state government said misleading ads had included examples such as digitally inserting a double bed into a room only large enough for a single or covering up visible damage.
Fines for violations could reach $49,500 for corporations and $11,000 for individuals that breach the new privacy standards. Using digitally altered or deceptive photographs without disclosure could lead to additional penalties – $22,000 for businesses and $5,500 for individuals.
The laws also target the excessive collection of personal data during the rental application process. Authorities estimate that NSW renters provide around 187,000 pieces of identification each week – ranging from photographs to social media profiles and even tattoo counts.
If passed by parliament, the legislation will introduce a standardised rental application form that outlines what information landlords and agents can request.
The Tenants’ Union of NSW is urging other states to adopt similar measures.
“This is an area of renting that has had almost no protection for renters at a time that they are often vulnerable and under pressure to find a new home,” Leo Patterson Ross, the union’s chief executive, was quoted as saying in a report by The Guardian. “We have seen some progress on standardising application processes in other states, but they haven’t included consideration of the whole range of ways information is being collected or ensuring advertising is an authentic representation of the property on offer, or at least manipulation is disclosed.”
Ross warned that manipulated photos can mislead tenants, causing them to waste time on unsuitable properties and creating false demand that may push up rents. He added that governments should consider requiring landlords to disclose details such as the age of listing photos, repair history, energy efficiency, and floor plans.
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, X (formerly Twitter), and LinkedIn.
