Consumer advocacy group Choice has raised the alarm on ‘RentTech’ platforms that Australians rely on when applying for a rental property, noting troubling privacy concerns.
How these platforms operate is sort of like a middle-man for rental applications. Prospective renters apply for properties through these apps, providing their proof of identity documents (such as driver’s licences and bank statements), which are then sent off to the real estate to discuss with landlords. This data is crunched to determine which applicants could potentially make for the best tenants, which is then presented to real estates and landlords.
But now Choice is blowing the whistle on just how much data these apps collect – and how much harm it could pose renters.
“Finding a home as a renter is already an incredibly difficult, draining experience. Our research found third-party rental platforms are taking advantage of people’s basic need for a roof over their heads to collect excessive data and profit,” Choice consumer data advocate Kate Bower said.
“People who rent deserve a guarantee that their personal data is safe and isn’t being used to exploit or harm them. Unfortunately, our research found that renters are seldom granted this assurance.”
According to the report, 41 per cent of respondents were pressured by a real estate agent or landlord to use a RentTech platform. Additionally, 60 per cent were uncomfortable with the amount of information collected, 59 per cent of landlords who used RentTech said that it was required or recommended by their agents, and 21 per cent of young renters (between age 18 and 34) reported that a ‘tenant score’ (a score calculated using a tenant’s provided data, such as professional qualifications and rental history) was used to assess their application.
Choice argues that there are four major problems with RentTech platforms: a lack of choice on the behalf of the applicant or tenant in using or not using these platforms, data insecurity among RentTech platforms, added costs for users due to the implementation of RentTech platforms and the invasive technologies used by these platforms.
“As the risk of data misuse and data breaches continues to grow, so too does the risk to consumers. The government needs to act quickly and strengthen Australia’s privacy laws to ensure they are fit-for-purpose and protect consumers effectively,” Bower added.
The consumer advocacy group is calling on the Federal government to include such concerns in its revamp of the country’s privacy laws, conduct an inquiry into automated rental decision-making, and legislate a ban on unfair trading practices. The group is also calling on the states and territories to account for RentTech platforms in lawmaking around residential tenancies.
It’s tough being a renter right now, with prices increasing amid a cost-of-living crisis, so our data being potentially at risk through RentTech platforms is just an extra little treat on top.