A NSW agency plans to charge successful rental applicants a fee to cover tenant background and database checks and preparing the lease. Can it do so?
Correct Answer
D) No, tenants cannot be charged for background checks or lease preparation
Changes that started on 31 October 2024 make clear that a tenant or prospective tenant cannot be charged extra costs when searching for, applying for or starting a tenancy. NSW Fair Trading lists fees for background checks, showing a property, preparing or filling in the tenancy agreement, initial keys and a pet bond as prohibited. The permitted payments are a holding fee, bond, rent in advance and lease registration where applicable.
Why This Is the Correct Answer
Background check and lease preparation fees are both expressly prohibited costs.
Why the Other Options Are Wrong
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