Now is the time for governments to review tenancy lawsย to better protect tenants.
Recent data breaches have highlighted concerns about just how secure our personal information is in the hands of companies. But thereโs one sector where a large-scale cybersecurity breach would be devastating โ real estate.
A data breach in the rental sector is a growing concern for renters, who regularly hand over large amounts of personal information when applying for rental housing. Transparency over how this information is used, shared and secured is often unclear.
Dr Chris Martin,ย Senior Research Fellow from theย UNSW City Futures Research Centre, says the ability of real estate agents and landlords to collect vast amounts of sensitive information is a significant concern. The tenancy law expert says now is the time for governments to regulate data collection in the rental sector.
โTheyโre collecting a lot more personal information, with arguably not a whole lot of purpose behind it,โ Dr Martin says. โItโs a big risk if all of that information falls into the wrong hands.โ
Multiple identification documents, bank statements, utility bills, employment details and rental history are standard asks โ more than enough to falsify an identity. But social media accounts, pet profiles and self-funded background checks are also becoming more common.
โThe sorts of questions being asked in tenancy applications are getting more intense,โ Dr Martin says. โApplicants might not want to hand over that level of information because of privacy concerns, but theyโre in a position where they have little choice.โ
Limitations of existing tenancy and privacy laws
Dr Martin says the issue stems from a lack of regulation over the amount and type of information property managers can ask from tenants.
Tenancy laws in most states and territories place few restrictions on what agents can collect. Only recent amendments to the Victorian Residential Tenancies Act restrict landlords and agents from asking tenants aboutย previous disputes with renter providers, bond history, bank statements with daily transactionsย orย information about protected attributesย under discrimination law.
โItโs not just a matter of protecting tenantsโ data from hackers. Itโs an issue for housing access,โ Dr Martin says. โQuestions about source of income, social security recipient status and whether youโve applied for social housing can be used to deny you a tenancy, and itโs not unlawful and not regulated in any jurisdiction.โ
Individual landlords and some smaller agents arenโt covered by theย Australian Privacy Principles. Those who are covered can collect information that is โreasonably necessaryโ for their functions or activities, which Dr Martin says leaves a lot of room for interpretation.
โIf itโs argued their function is to assess the best candidate for tenancy, then there could be quite a broad scope to argue they can legally collect substantial personal information to do that.โ
Regulating the tenancy application process
The Real Estate Institute has signalled concern about the amount of data being collected andย supported better guidelines on what should be collected by agents. But Dr Martin says fear of reputational damage alone is not enough to ensure privacy concerns are addressed.
โWe should be doing more in our residential tenancy legislation to regulate the tenancy application process and the information collected by agents, landlords and third-party intermediaries,โ Dr Martin says.
One solution would be to review the tenancy application process and develop a standard application with prescribed questions.
โWe could have a standard form for tenancy application that asks a reasonable number of relevant questions, and not the unreasonable, intrusive and risky questions landlords and agents may be asking now,โ Dr Martins says.
Dr Martin says thereโs a strong case for some modest regulation of landlords too, through registration and licencing requirements. The proposal would see landlords complete basic training to understand their responsibilities and obligations to tenants.
โWe have registries in other parts of our rental housing system, like the boarding house and residential parks sectors, so itโs not without precedent,โ Dr Martin says. โOther countries also have registration requirements for landlords, like some parts of the UK, which have some requirements around the education of landlords.
โIt would give necessary information for policymakers about who is entering the sector and give tenants some reassurance thereโs some visibility of their landlordโs history and conduct โ good and bad.โ
Dr Martin says that such reforms would help reduce the power imbalance between landlords and tenants.
โIn tight markets, as weโre seeing in Australia now, landlords and agents feel they can ask for more and more,โ Dr Martin says.
โThe fact it always happens that way โ that itโs landlords and agents extracting more and more from tenants โ shows how asymmetric the relationship is and why we need stronger residential tenancy laws.โ
Media contacts:
Ben Knight
UNSW Media & Content
(02) 9065 4915
b.knight@unsw.edu.au
