Renting a home comes with a fairly predictable list of expenses.
There’s the rent itself, a bond in a new rental, some utility costs, depending on the circumstances, the cost of any damage beyond ordinary wear and tear.
So how is it that thousands of NSW renters found themselves charged illegal fees over the past 12 months?
The answer, at least in part, resides in the way rent is being charged. Rental applications are increasingly handled online, with third-party platforms existing between tenants and agents – often making fees easy to overlook.
This is precisely what the NSW Rental Taskforce has been cracking down on throughout 2026, returning around $180,000 to renters who were charged amounts they shouldn’t have paid for, including:
- Background checks through online platforms
- Illegal dishonour charges
- Costs associated with searching for, applying for or starting a tenancy
- Penalties or interest on top of bank fees
Which all begs the question: What are tenants actually responsible for, and required to pay?
A NSW tenant is generally responsible for covering the following:
- Rent
- A rental bond of up to 4 weeks’ rent
- Up to 2 weeks’ rent in advance
- A holding fee where applicable
- Water usage and certain utilities where requirements are met
- Damage beyond fair wear and tear
- Costs associated with ending a fixed-term tenancy
- Genuine bank fees resulting from a dishonoured payment
What can’t tenants be charged for?
- Background or credit checks as part of an application
- Preparing a tenancy agreement
- Being shown a property
- Initial copies of keys or opening devices
- Additional or inflated penalties for late payments
- Made-up or inflated dishonour fees
- A bond to allow tenants to keep a pet on the property.
Information provided by NSW Fair Trading.
Know what you’re paying for.
Knowing your rights doesn’t mean challenging every charge – but it does mean being clear on what your financial obligations are.
NSW Fair Trading has clear guidelines on what this looks like, as well as where and how to seek assistance if something doesn’t look right.
Prudential Real Estate Macquarie Fields | (02) 9605 5333 | [email protected]
Prudential Real Estate Narellan | (02) 4624 4400 | [email protected]
