Real estate agencies will have to disclose if AI or other image-altering software has been used in their ads. This image was created using AI. Photo: Gemini.
Real estate agents have been put on notice about using AI-generated images or misleading altered photographs in rental advertisements in proposed NSW legislation.
The NSW Government has introduced the Residential Tenancies (Protection of Personal Information) Amendment Bill 2025 which would require mandatory disclosure when images have been altered to conceal faults to mislead rental applicants.
Better Regulation and Fair Trading Minister Anoulack Chanthivong said the disclosures had to be made before a renter entered into a tenancy agreement, and disclosures would be needed for a range of image alterations.
“For example, this would capture alterations such as those that remove undesirable infrastructure from the background, such as electricity towers or items that obscure views; digitally modifying photos to obscure property damage, such as water ingress stains or mould; or using artificially generated furniture that shows a double bed in a bedroom that is only large enough to fit a single bed,” he said.
The penalties for non-disclosure of misleading altered photographs will be $5500 for individuals and $22,000 for businesses.
The proposed legislation also includes new limits and safeguards on the personal information of renters.
About a third of people in NSW are renting, and it’s estimated around 187,000 pieces of identification information’s collected from NSW renters every week.
Mr Chanthivong said the reforms would make renting fairer across the state.
“These reforms will stop unnecessary data collection, limit the risk of data breaches, and give everyone greater confidence in how privacy is safeguarded throughout the rental process,” he said.
“Renters are entitled to dignity and privacy when living in a rental property – and this extends to their personal information too.”
Mr Chanthivong explained the legislation would make it clear what information could and couldn’t be collected during the application process, as NSW renters were being asked to provide “vast quantities” of personal information when applying for properties.
“That can range from names to pay slips, bank records and highly sensitive identification documents. It can also include clearly unnecessary information such as photos, social media accounts, or even information about their children or relationship status,” he said.
“It is not clear how that information is being used, and if it ends up in the wrong hands the outcome could be disastrous.”
Clear privacy rules will be outlined for all landlords, agents and rental platforms who handle personal information.
Penalties of up to $11,000 for individuals and $49,500 for corporations for agents and landlords who don’t adhere to the privacy rules have been proposed.
NSW Rental Commissioner Trina Jones said by setting clear rules about how renter data was handled, this would protect tenants and reduce legal and reputational risk for landlords and agents.
“Cyber breaches and data theft are a major privacy risk to individuals and to the businesses that collect and hold that information. There’s a cyber breach reported in Australia every six minutes,” she said.
“This legislation will see sensible limits on what information can be collected in a rental application, creating a fairer and more consistent process, and gives rental applicants more control over their personal data.
“Renters shouldn’t have to trade away their privacy just to find a place to live.”
If the legislation is passed, the government will consult with stakeholders to finalise the standard application form and the types of documents that can be collected to assess a rental application, as well as when those documents need to be destroyed.
Other amendments proposed in the bill include:
- making sure renters know there is an embedded utility network at an advertised rental property, so cost implications are known
- requiring a landlord or landlord’s agent to give a rent record to a tenant when a lease terminates
- allowing tenants who apply for consent to keep a pet (within seven days of signing a lease agreement) to keep the pet until the landlord gives a written response.
