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Regulators in four states are considering taking action after ABC has its real estate website inspected and pressured rental applicants to pay for background checks.
Key Point:
- 2Apply platform encourages rental applicants to ‘stand out from the crowd’ by paying for background checks
- Legal expert Chris Martin said accepting payments from prospective tenants as part of a rental application could be illegal in some jurisdictions.
- Regulators in Tasmania, Western Australia, South Australia and New South Wales are investigating the matter
ABC has confirmed that at least 160 real estate agents are using the 2Apply platform to process more than 1,700 property applications in all of Australia’s capital cities and most major regional centres.
2Apply encourages rental applicants to “stand out from the crowd” by paying for a background check.
Tenants can decline payment, but the rating is limited to 4 out of 5 stars and must check a box that says “No, I don’t want to verify my identity.”
The platform also requires extensive personal information such as names, ages, genders, child support status of tenants’ children, vehicle make, model and registration.
Other rental application platforms such as realestate.com.au and Snug.com also charge for background checks against data company Equifax’s National Tenancy Database.
Chris Martin, a rental law expert at the University of New South Wales, said accepting payments from prospective tenants as part of a rental application could be illegal in some jurisdictions. rice field.
“I think there is a good argument that it is illegal under Tasmania, New South Wales, South Australia and Western Australia regulations,” Dr Martin said.
Regulators in four states considering the issue
Government regulators in each of these states have now confirmed that they are investigating the matter.
Western Australia’s Consumer Protection Commissioner, Gary Newcombe, has confirmed that his office will be investigated for any violations of the law.
“Western Australia’s Consumer Protection Agency is aware of a number of online services offered to real estate agents in relation to rentals,” he said.
“We are reviewing this particular example (2Apply) and others to determine if there is any violation of the law.
“We will also consider whether amendments to Western Australia’s residential tenancy law justify being recommended by the state government.”
Tasmanian rental law makes it illegal to accept money from prospective tenants for the purpose of making an application to rent residential property.
In a letter to the Tasmanian Tenants Union yesterday, Housing and Tenants Commissioner Narel Butt said he was concerned about the issues outlined in the ABC article.
A Justice Department spokesperson told ABC, “The commissioner will consider this matter based on the information provided and appropriate action.
“Anyone with further information is encouraged to contact the Commissioner by email at rtc@justice.tas.gov.au so that we can properly investigate,” the spokesperson said.
A spokeswoman for South Australia’s Consumer and Business Services Regulator said the agency was “reviewing the matter to determine whether any action should be taken”.
ABC also understands that NSW Fair Trading is considering this issue.
2Apply, Inspect Real Estate, and the software groups behind News Corporation’s REA Group (which owns realestate.com.au, Snug, and Equifax) all agree that payments received for background checks are subject to all relevant laws. It said it was compliant and emphasized that tenants have a choice. About whether to pay for a background check.
Dr. Martin said it may be illegal to receive payment even though renters have the option not to pay.
“The laws of these four states stipulate that no person shall be subject. [payment]So to say you don’t need it is no defense against it,” he said.
“The ban is not just about asking, it’s about receiving.”
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