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Kylie Davis, president of the Proptech Association, said that “there is a new generation of proptech apps that are exclusively focused on delivering a better tenant experience,” following allegations by the consumer advocacy group that such platforms take advantage of renters.
Despite revelations within the report by Choice that 41 per cent of surveyed renters felt pressured into using a RentTech platform — such as 2Apply, Snug, and Ignite — AJ Chand, Proptech Association Australia board member and InstaRent founder and chief executive officer, explained how “in today’s digital world, choosing to use an app is the preferred method for a tenant who wants to be able to apply quickly for more properties.”
He added that such platforms “give more choice, convenience, and confidence in the rental application process.”
Ms Davis said proptech apps can provide tenants with an added advantage in an aggressive rental market, exacerbated by tight vacancy rates, by saving them time, money, and hassle.
“These apps dramatically streamline and improve the application process for renters by removing the need to repeatedly fill in manual forms and constantly resupply the same references, identity, and income data in support of concurrent lease applications.”
According to Kate Bower, Choice consumer data advocate, “Third-party rental platforms are for-profit businesses which often force or pressure tenants to pay additional fees, including fees to pay rent, penalties for failed payments, and even the costs of their own background checks.”
However, Ms Davis explained that legislation in place within many Australian jurisdictions prevents any person — whether they be a real estate agent or landlord — from requesting or receiving payment from prospective tenants in relation to a lease application with the exception of a deposit, initial rent payment, or a rental bond.
The CHOICE report found six out of 10 renters revealed they were uncomfortable with the amount and type of private information requested in their rental application for these third-party applications.
Ms 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.”
Justin Butterworth, founder and chief executive officer at Snug, one of the RentTech platforms named in the Choice report, said the industry is looking to transition to collect less data and store abstracted information with "integrations with open baking, zero cost Government ID verification systems, and rental service providers coupled with responsible AI will further facilitate rapid application processing with minimal data storage."
The proponents of proptech, however, noted that personal data has always been collected in the course of rental applications, and that the intention of platforms is to reduce the time spent filling out forms by saving data, with Mr Butterworth adding the "Privacy Act, Discrimination Act, and Spam Act, as well as various regulations covering the real estate industry provide robust and sufficient protections for consumers."
Mr Chand acknowledged that while there is no uniform approach to data collection, “it’s usual market practice for property managers or landlords to request references plus proof of identity and income from a prospective [tenant].”
Ms Davis explained many apps possess the “option for applicants to fill in multiple forms sharing their information and having that saved, stored, and controlled by the real estate agency, or creating a personal account with one of these new apps, maintaining control over their own data, deciding who it goes to and when they want it deleted.”
Mr Chand added, “Proptech offers an efficient, transparent, and secure solution for a tenant to participate in that process.”
He concluded that “cloud-based apps are designed to adhere to the highest standards of cyber security and digital data management with multi-factor authentication and scheduled destruction dates”.
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