AI, privacy, and rental applications: NSW agents face sweeping new rules

The new Residential Tenancies Amendment Bill 2025 will overhaul how agents and landlords process rental applications and tenant data, with tighter privacy protections and a more consistent process for renters.

Under the new rules, expected to take effect in early 2027, landlords and agents will have to disclose when rental listing images have been digitally altered or AI-generated in ways that could mislead prospective tenants, including by hiding faults or distorting room proportions.

Additionally, agents and landlords will be required to use a standardised rental application form.

The new form will clarify what information agents and landlords really require and what is off-limits, such as personal photos, social media accounts, details about their children, or even their tattoos.

There will also be clear rules around how personal data must be stored and destroyed.

The changes will limit the collection of sensitive identification documents, with agents and landlords only able to request documents such as passports and driver licences from the successful applicant before the lease is signed.

The new standardised rental form will be distributed to property professionals later, with the government consulting industry stakeholders to determine which documents are necessary and how long those records can be retained.

Additionally, agents will have to tell prospective tenants whether a property is part of an embedded utility network, giving renters advance notice if they must use a specific electricity or gas provider and helping them understand potential energy costs.

If breached, the new regulation will fine individuals up to $11,000 and corporations up to $49,500 for privacy violations, while businesses that fail to disclose altered photographs face penalties of up to $22,000.

Minister for Better Regulation and Fair Trading Anoulack Chanthivong said the reforms will better protect renters from false information while protecting their data.

“These laws put an end to the practice of excessive and intrusive data collection in the rental process and make it fairer for renters and less stressful for landlords and agents.

“Whether you have a tattoo, or what school your kids go to, is not relevant to whether you’ll be a good tenant.

“They build on the government’s landmark suite of rental protections that have banned no-grounds evictions, limited rent increases to once a year and mandated fee-free ways to pay rent,” Chanthivong said.

The latest privacy reforms were part of a broader package of changes aimed at making renting fairer for tenants.

Other measures include ending no-grounds evictions, limiting rent increases to once a year, removing certain rental fees, making it easier to keep pets and introducing fee-free rent payments and Smart Rental Bonds statewide.