How Your Data Is Useds

RentTech platforms making renting that much harder 

A new CHOICE report reveals the increasing dominance of third-party rental platforms and their discriminatory impacts on prospective tenants.
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Fact-checked

Checked for accuracy by our qualified fact-checkers and verifiers. Find out more about fact-checking at CHOICE

Last updated: 18 Apr 2023
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Need to know

  • In a national CHOICE survey, 41% of people who rent said they were pressured to use a RentTech platform such as Ignite, 2Apply, Snug, tApp and others
  • RentTech platforms demand excessive personal data from prospective tenants who are given little choice but to provide it
  • CHOICE is calling on the Federal Government to urgently commit to privacy reforms to protect renters from the risks created by rental technologies, among other recommendations

In recent years the home rental application process has increasingly been taken over by third-party rental platforms that have the potential to harm people looking for a home in a number of ways. 

In effect, the private businesses behind these RentTech platforms are using data-crunching algorithms to decide who gets to find a place to live. Tenants are faced with the choice of giving up excessive amounts of personal information or not being able to apply. 

Now CHOICE has released an in-depth report that paints a chilling picture of how much tougher the rental market has become with the introduction of RentTech platforms such as realestate.com.au’s Ignite as well as 2Apply, Snug, tApp and others.

CHOICE research uncovers serious consumer harms

“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,” says CHOICE consumer data advocate Kate Bower. 

“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.” 

Text-only accessible version

41% of renters were pressured to use a third-party platform by their agent or landlord.

59% of landlords who used RentTech said it was required or recommended by their agent.

25% of people who rent have paid for a tenancy check.

60% of renters were uncomfortable with the amount and type of information collected.

29% of renters have opted not to apply for a rental because they didn’t trust the RentTech platform.

21% of young renters (aged 18–34) reported a tenant score was used to assess their application.

The four main problems with RentTech

The report At what cost? The price renters pay to use RentTech highlights four consumer problems in the sector. 

1. Lack of choice

In a national CHOICE survey, 41% of renters said they felt pressured to use a RentTech platform to apply for a place to live, an imposition that may make life easier for landlords and rental agents but that can expose renters to harm.

In the midst of a cost-of-living and rental housing crisis, people who rent shouldn’t be footing the bill for RentTech they don’t even want

CHOICE consumer data advocate Kate Bower

Meanwhile, the RentTech businesses pass along processing costs to the users of these platforms and give themselves wide latitude on the data they collect and what they use it for – without doing nearly enough to guarantee the security of this personal information. 

Read more:
RentTech platforms have your data, whether you like it or not

2. Data insecurity

Applying for a rental can require extensive amounts of personal information such as identity documents, employer and tenancy references, and proof of income, so naturally many renters in our survey were concerned about the data privacy and security risks of RentTech platforms. 

Six out of 10 people who rent said they were uncomfortable with the amount and type of private information requested in their rental application. With large scale data breaches at Optus, Medibank and Latitude Finance in the last year, along with smaller breaches at real estate agencies, LJ Hooker and Harcourts, the need for stronger consumer protections is urgent. 

3. Added costs

As if forcing people to sign up for RentTech platforms wasn’t enough, renters can end up paying processing and administrative costs as well as stiff fees for late payments. 

“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,” says Bower.

“In the midst of a cost-of-living and rental housing crisis, people who rent shouldn’t be footing the bill for RentTech they don’t even want.”

Read more:
Rental agents shifting costs to renters

4. Invasive technologies

Third-party rental platforms provide landlords and real estate agents with tools to screen prospective tenants based on their income, employment status, lifestyle, and other criteria and renters have few legal protections from exploitative and unfair automated systems.

“Automated decision-making systems are becoming an increasingly common part of rental application systems. A sore lack of regulation in this market means these automated decision-making systems could increase barriers and discrimination for renters, and potentially exclude them from housing,” Bower says.

Read more:
RentTech platforms: How your data is used against you

The case for reform

CHOICE is calling for Federal and State Governments to take the following steps to ensure renters are protected from the risks created by rental technologies: 

  • Reform the Privacy Act to ensure Australia’s privacy laws are up to date and fit-for-purpose for consumers.
  • Conduct a federal inquiry into automated decision-making. 
  • Legislate an economy-wide ban on unfair trading practices. 
  • Modernise state and territory residential tenancies acts to tackle RentTech harms.

“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,” says Bower.

Andy

I'm a long-time investigative journalist who started off in New York City, ended up in Sydney, and likes nothing better than to shine a spotlight on underhanded behaviour in the consumer marketplace. The Investigations Team's work often focuses on financial harm to vulnerable people at the hands of corporations and businesses. I came to CHOICE in late 2010 by way of the Australian Securities and Investments Commission, a role that was preceded by a stint at the Australian Financial Review. I've also been a comms manager for a sales-driven boutique financial services firm in Sydney – an experience that inspired me to apply for the ASIC job. I research and report on a wide range of issues in the consumer marketplace – there never seems to be a shortage of them. I'm a former member of the NSW Fair Trading Advisory Council. You can find me on Twitter and LinkedIn. Recent articles by Andy TPG email cancellations causing chaos, but there may be an upside Cigno payday loan charging 800% declared illegal These are the most complained about businesses in 2023 3 out of 4 Australians harmed by a data breach CHOICE report: Extreme weather putting home insurance out of reach Why are we still paying billions in bank fees?

I'm a long-time investigative journalist who started off in New York City, ended up in Sydney, and likes nothing better than to shine a spotlight on underhanded behaviour in the consumer marketplace. The Investigations Team's work often focuses on financial harm to vulnerable people at the hands of corporations and businesses. I came to CHOICE in late 2010 by way of the Australian Securities and Investments Commission, a role that was preceded by a stint at the Australian Financial Review. I've also been a comms manager for a sales-driven boutique financial services firm in Sydney – an experience that inspired me to apply for the ASIC job. I research and report on a wide range of issues in the consumer marketplace – there never seems to be a shortage of them. I'm a former member of the NSW Fair Trading Advisory Council. You can find me on Twitter and LinkedIn. Recent articles by Andy TPG email cancellations causing chaos, but there may be an upside Cigno payday loan charging 800% declared illegal These are the most complained about businesses in 2023 3 out of 4 Australians harmed by a data breach CHOICE report: Extreme weather putting home insurance out of reach Why are we still paying billions in bank fees?

Kate

Kate worked at CHOICE from 2016–2024. She initially joined as a fact-checker and verifier – a role in which she was able to transfer her skills from her previous career in academia and qualitative health research to ensuring CHOICE publishes the highest quality information and data. She then spent three years with the Money and Travel team working behind the scenes as a data analyst on insurance comparisons and articles. She was proudly part of the team that built CHOICE's independent and comprehensive health insurance comparison tool that has ensured thousands of Australians have the right level of health insurance cover without getting ripped off. During her time with the Money and Travel team, she led the digital transformation of data collection for our insurance comparisons by implementing robotic process automation – a change necessitated by the rapid transformation of insurance along with other financial services. In that role, she saw firsthand how businesses are using increasingly sophisticated technologies to design, personalise and price their products and services – and not always to the benefit of their customers. That's why she went on to take on the role of consumer data advocate in the Consumer Data team.  Before CHOICE, she worked as an academic at the University of Technology, Sydney where she gained a Doctor of Philosophy. She also has a Bachelor of Arts from the University of Tasmania, with First Class Honours from the University of New South Wales. You can connect with Kate on LinkedIn.

Kate worked at CHOICE from 2016–2024. She initially joined as a fact-checker and verifier – a role in which she was able to transfer her skills from her previous career in academia and qualitative health research to ensuring CHOICE publishes the highest quality information and data. She then spent three years with the Money and Travel team working behind the scenes as a data analyst on insurance comparisons and articles. She was proudly part of the team that built CHOICE's independent and comprehensive health insurance comparison tool that has ensured thousands of Australians have the right level of health insurance cover without getting ripped off. During her time with the Money and Travel team, she led the digital transformation of data collection for our insurance comparisons by implementing robotic process automation – a change necessitated by the rapid transformation of insurance along with other financial services. In that role, she saw firsthand how businesses are using increasingly sophisticated technologies to design, personalise and price their products and services – and not always to the benefit of their customers. That's why she went on to take on the role of consumer data advocate in the Consumer Data team.  Before CHOICE, she worked as an academic at the University of Technology, Sydney where she gained a Doctor of Philosophy. She also has a Bachelor of Arts from the University of Tasmania, with First Class Honours from the University of New South Wales. You can connect with Kate on LinkedIn.

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