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A new report has found that almost half of renters in Victoria are exposed to data risks and hidden expenses from being forced to use specific digital platforms or apps as part of their tenancy.
Forty-five per cent of Victorian renters and 58 per cent of landlords use rent tech platforms as part of the rental experience, according to research by the Consumer Policy Research Centre (CPRC).
The report, titled Renting in Reality – Use and Experience of Rent Tech in Victoria, found that these platforms lead to additional fees for renters, as well as the exposure of data to the third-party managers of these platforms, all because the renter is forced to use the app.
These apps are used for repairs, inspections, and communication between real estate agents and renters.
However, the additional fees renters face using these apps are illegal under Victorian law, which dictates that rent payment charges are against the law.
One user in the report said they were “forced to use their own app to pay rent at a cost to renter. Emails from the app are excessive and annoying. Forced to update my phone to accommodate the app”.
Additionally, the data collected by these platforms is extensive, including unnecessary amounts of personal information and detailed photos taken at property inspections.
Another said their “agent asked every applicant to fill out a lease agreement (instead of an application form) as well as asking for inappropriate personal details (e.g. full bank transaction information for a period of months)”.
“At the same time as refusing to tell us their full name and/or business name for the application form. When we reported this to consumer affairs, we were told they technically hadn’t done anything illegal yet because we hadn’t signed an agreement with them,” the renter said.
The CPRC said these apps should not hinder the rental experience, adding that these measures could breach rental legislation.
“Renters shouldn’t lose their privacy or face more fees just because a landlord or agent prefers an app. Technology must serve renters, not make renting harder or leave them worse off,” said CPRC deputy CEO Chandni Gupta.
“The Victorian government has just confirmed new rules that will mean renters’ private information has to be better protected. There is also a new ban on fees for rental applications and other third-party fees. This research shows these new rental protections are essential.”
Victoria introduced updated rental legislation last month, as part of reforms to the Consumer and Planning Legislation Amendment (Housing Statement Reform) Act 2025.
This, alongside banning rent payment costs and other things, forces landlords and agents to follow strict rules regarding the destruction and de-identification of tenants’ private information. They are also prohibited from disclosing information without consent.
It could be argued that requiring a tenant to use an app once a lease is signed is forcing them into data collection that they may not condone, or be aware of, and this could be a breach of the legislation.
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