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Rental blacklists open for scrutiny
5 April 2006
National regulation is needed to clean up unfair and trivial entries on rental blacklists, according to a new report from the Victorian Law Reform Commission.
“Private companies get information about tenants’ rental histories from real estate agents and compile it on databases that agents then check before approving or refusing rental applications,” law reform commissioner Judith Peirce said.
“Some of the databases wipe off information after a set time, but some entries are kept indefinitely. Tenants who get a bad rating on these databases are effectively barred from renting and may be unnecessarily forced into emergency or public housing.
“We recommend the Victorian Government works toward national regulation of the databases to ensure the reasons behind listings are transparent and fair.
“Until national regulation is achieved, the government should amend the Victorian Residential Tenancies Act so tenants are only listed on a database if a Victorian Civil and Administrative Tribunal (VCAT) order is made against them.
“One in four homes is rented, so this is an issue that affects thousands of Victorians, either as renters or as landlords.
“Agents have a legitimate need to minimise the risks associated with renting out a property, but the secrecy shrouding the current databases is inappropriate. Tenants should know when they are listed and why.
“The Tenants Union told us about people who have been listed on databases for things their housemates or former partners have done and others have been listed for disputes with agents they thought had been resolved.
“Some database operators charge $15 if tenants want to find a listing about themselves and do not have to remove incorrect listings. We recommend database operators provide reasonable access for people who want to see their entry and real estate agents must show database listings to tenants if they are refused a tenancy.
Database operators would be fined if they list people who have not had a VCAT order made against them and real estate agents could be fined for providing incorrect information.
“Tenants would be able to get listings removed from databases if they are false and misleading, a dispute before VCAT has been resolved, or VCAT has not made an order against them.
“We’ve recommended that all listings should automatically expire after three years and database operators who do not remove the listings should be fined.