NSW real estate agents could be forced to declare whether a photo on a listing is AI-generated, following concerns renters are being deceived.
The State Government introduced a bill to Parliament last week that could see penalties of up to $22,000 for failing to disclose if a photo has been digitally altered.
Advocates are pushing for the AI declaration to become a national standard.
Renting
When a property is listed as a rental in NSW, real estate agents will typically upload photos on the landlord’s behalf.
Some owners choose to ‘style’ their property by placing furniture and artworks.
Artificial intelligence sites including Spaceio and HomeDesignsAI can also be used to style a property digitally.
Concerns
Renters’ rights groups have expressed concerns that AI can also be used to cover up issues such as cracks, holes, and peeling paint.
The NSW Tenants Union said this has led to prospective tenants “being misled into visiting a property that is not suitable”.
It said the strategy also “risks inflating the rent itself by inflating the number of people who appear interested in a place”.
NSW reform
The NSW Government introduced a bill last week that would require real estate agents to label whether they used AI on a rental listing photo.
In a statement, the Fair Trading Minister Anoulack Chanthivong said these types of photos can “obscure property damage” or be manipulated to show a “double bed in a bedroom that is only large enough to fit a single”.
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Failing to disclose a digitally-altered photograph would result in fines of $5,500 for a person or $22,000 for a business.
Opposition
Shadow Fair Trading Minister Tim James has expressed support for the AI-related measure, but said he would “closely scrutinise” the entire suite of reforms.
The AI reform is part of a larger legislative measure that would also bring in new rules for handling a renter’s personal information.
In a statement to TDA, James said rental listings should “reflect the real condition of properties, not just a polished version.”
Response
Better Renting CEO Angela Cartwright told TDA she wanted to see a national push to adopt similar measures.
“There’s absolutely no reason that any jurisdiction should not require mandatory declaration of AI-generated photos,” she said.
Older photos used in rental property ads should also be flagged, Cartwright said.
“At a bare minimum, [renters] should ideally have accurate and up to date images of the property that haven't been altered.”
Real Estate
CEO of the Real Estate Institute of NSW Tim McKibbin told TDA he supported an obligation to declare AI usage in rental ads.
He noted that current laws already protect renters against “misleading and deceptive conduct”.
For instance, McKibbin said a house listing can’t have photos of a “beach or coffee shop” that isn’t located anywhere near the property.
