Can I be charged for a rental background check in NSW?

No — a landlord cannot charge you for a rental background check in NSW. This is explicitly prohibited under section 23(2)(b) of the Residential Tenancies Act 2010.

This question comes up often with online rental applications. Some platforms have offered “instant” background report upgrades as part of the application process. Whether or not a fee is framed as optional, the law puts the cost squarely on the landlord — not you.

What the law says

Section 23 of the Residential Tenancies Act 2010 sets out exactly what a landlord can and cannot ask you to pay before you sign a lease.

Section 23(2)(b) is direct: a landlord must not require or receive any payment for conducting a background check on a prospective tenant. The Act sets out no carve-outs. The maximum penalty is 20 penalty units.

Section 23(2)(a) adds a related prohibition: a landlord also cannot charge you for preparing a written tenancy agreement. Both fees are banned in the same section.

These prohibitions apply at the pre-agreement stage — that is, before you sign anything.

What you can be charged for before signing

Section 23(1) lists the only payments a landlord can lawfully ask for before a tenancy agreement is signed. Breaching s23(1) itself also carries a maximum penalty of 20 penalty units, so both the “allowed list” and the specific bans in s23(2) are separately enforceable.

• A holding fee — to reserve the property after you have been approved. Section 24 limits this to one week’s rent. A receipt is required, and it must be returned or credited if the tenancy goes ahead.
• Rent — your first payment once a date is agreed.
• A rental bond — capped at 4 weeks’ rent under section 159(1). Note also that section 159(2) says no bond can be required before you sign.
• A registration fee under the Real Property Act 1900 — this applies in very limited circumstances and is uncommon in standard residential tenancies.

If you are asked to pay anything not on that list before signing, it is likely unlawful.

What about third-party rental platforms?

Some online rental platforms have historically charged applicants for instant background reports or “verified profile” products as part of the application process. This is an area where landlords and platforms sometimes argue the fee is separate, optional, or a premium add-on rather than a landlord-imposed charge.

The law applies to the landlord — and to anyone acting on the landlord’s behalf. If a platform is being used to manage applications for a landlord or agent, and that platform charges you for a background report as a condition or practical requirement of applying, the prohibition under section 23(2)(b) is likely engaged.

If the fee is genuinely optional, not connected to the landlord’s assessment process, and you are not disadvantaged for declining it, the position is less clear. In practice, the line between “optional” and “required to be competitive” is blurry in a tight rental market.

If you are unsure whether a platform fee is lawful, treat it as suspect and document it.

The NSW Government tightened this area as part of the Residential Tenancies Amendment Act 2024 (Act No 75 of 2024), which commenced on 19 May 2025 alongside a broader rental reform package. Those changes reinforced that the pre-agreement fee prohibition applies whether the request comes from the landlord directly, their agent, or a third-party platform being used to manage applications on their behalf.

What to do if you’re asked to pay

Refuse in writing. A simple message saying “I understand s23(2)(b) of the Residential Tenancies Act 2010 prohibits charging for a background check — I won’t be paying this fee” is enough. Keep a copy.

Document the request. Screenshot the fee request, any emails, and the property listing. Note the date and the amount. You may need this later.

Report it to NSW Fair Trading. NSW Fair Trading handles complaints about landlords and agents breaching the Residential Tenancies Act. You can lodge a complaint online or by phone. There is no cost to complain.

Know your position. You are not required to pay an unlawful fee to be considered for a property. That said, in a competitive rental market, refusing a fee — even an illegal one — can feel risky. That is a real pressure. The law is on your side, but only you can decide how to navigate that situation.

If the landlord or agent withdraws your application because you refused to pay an unlawful fee, that itself may be relevant to a Fair Trading complaint.

Have you been asked to pay a fee that doesn’t sound right?

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The ban on background check fees is not new policy guidance or a recent code of conduct. It is a firm statutory prohibition in the Residential Tenancies Act 2010. If a landlord, agent, or platform asks you to pay for a background check before you sign a lease, document the request and report it.