More Information Being Collected On Renters, As Experts Call For Protections

A report has found that increasing information is being collected on prospective tenants, necessitating new legislated protections.

The research into “property technology” used by landlords and real estate agencies was led by Sophia Maalsen, Associate Professor at the University of Sydney’s School of Architecture, Design and Planning, and published by the Australian Housing and Urban Research Institute (AHURI).

According to the report, data which is commonly collected on aspiring renters includes identity documents, employment and financial details including bank statements, and references. Applicants might also be checked against databases and blacklists.

“One real estate agent we interviewed said consulting these databases when selecting tenants was expected,” Dr. Maalsen said in a media release by the AHURI.

Some application forms had about 50 data points, including responses to “lifestyle-related” prompts. Some applicants are asked whether they smoke.

Existing legislation unfit for purpose, say researchers

The researchers found that the embrace of new technology, including artificial intelligence capabilities, had outpaced regulation such that existing frameworks were not fit for purpose. The Privacy Act 1988, which protects personal information, was noted not to apply to many real estate agencies and property technology companies, due to a small business exemption.

“How applications are sorted and scored remains opaque, and the weighting of characteristics is unknown, creating a ‘black box’ effect,” said Dr. Maalsen.

Technological advancement plays a key role in the increasing collection of data on tenants and applicants, she continued. Property tech “is already utilising artificial intelligence and automated decision-making to rank which applicant should get a rental.” 

“In the social rental sector, automated screening is used to identify the most vulnerable applicants and decide where applicants land on property waitlists.”

Australia is not alone in confronting these challenges. The researchers noted a tenant screening service in Britain that identifies applicants who employ “high risk language” or who are recently-arrived immigrants. This was taken to suggest bias against activists and migrants.

They pointed favourably to the European Union’s General Data Protection Regulation and Artificial Intelligence Act, which they said could inform Australia’s response.

Some good brought about by technological advancements was also identified, including streamlined application processes for prospective tenants and improved communication between landlords and renters.

Government on the ball, says rental commissioner

Trina Jones is the inaugural New South Wales Rental Commissioner, holding the post from 2023. She said that the Government “has passed multiple tranches of landmark legislation through NSW Parliament to make renting fairer across our state.” 

“Around a third of people in NSW rent their homes, and it’s estimated around 187,000 pieces of identification information are collected from NSW renters every week. But currently, there is no consistent standard for how this highly sensitive information is stored, used, or destroyed.”

“Renters shouldn’t have to trade away their privacy just to find a place to live,” Jones told this masthead.

 The Minns Government has introduced the Residential Tenancies Amendment Protection of Personal Information Bill. Jones said that it is intended to “stop the unnecessary collection of extra personal information, and help reduce the risk of identity theft and data breaches for tenants, property technology platforms, and agents.”

“By limiting unnecessary or premature data collection, we can help reduce the risk of discrimination, making the process fairer for everyone.”

“Tenants are entitled to dignity when living in a rental property — and this extends to their personal information, too.”