The Consumer Policy Research Centre (CPRC) identified rental platforms that encouraged hopeful tenants to share an “excessive” amount of personal information, or asked them questions that were “completely outside” the new rules.
RentTech platforms are increasingly used by real estate agents in Australia for people applying for rental properties to submit applications and supporting documentation, meaning they store sensitive data.
In addition to potentially putting people’s privacy at risk, RentTech companies continued to use controversial tools such as screening tests and “rewards” schemes, the CPRC found in its report on the sector, released on Thursday.
As part of its report, the CPRC reviewed Victoria’s rental reforms which, in March, established a new standard rental application form designed to limit the information real estate agents can request from renters.
The CPRC’s deputy chief executive officer, Chandni Gupta, said while there had been improvements in Victoria, these had not extended to other parts of Australia.
For example, in other jurisdictions, rental platforms were still asking more invasive questions of prospective tenants and charging people third-party fees for background checks or to process their applications and rental payments.
“Big tech will move the needle just enough and will narrowly follow, but likely won’t offer that same service outside of where there’s no obligations to do so,” Gupta said.
In New South Wales and South Australia, RentTech companies are banned from charging prospective tenants for background checks, but they are still allowed to request them.
Its findings were based on several “mystery shops” – mock rental applications on three of the major platforms – as well as interviews with Victorian renters and industry experts and reviews of the company’s privacy policies.
Even though real estate agencies may simply use personal information for rental applications, the data had the potential to be shared with a “wide variety” of entities including debt collectors and the providers of financial products, the CPRC found.
“It’s really difficult to ascertain how that data will be used for or against you and whether it might exclude you from the actual rental process, or whether it might even [expose you to] personalised particular products and services outside of that,” Gupta said.
“There’s a power imbalance between renters and the platforms they have to use because pushing back or finding an alternative is not an option.”
In April, the privacy commissioner found that one of Australia’s most-used RentTech platforms had collected unnecessary personal information from consumers via unfair means over a five-year period.
