Under a new program being piloted, renters will have an easier way of proving their identity and paying when applying for properties. Photo: File.
Renters will have a better time applying for property leases if reforms being trialled are brought in.
Accredited Digital ID providers, Consumer Data Right (CDR) data recipients and real estate entities are working with the Federal Government as part of the pilot to make it easier and safer to prove who you are when applying for a rental.
Australian applicants will no longer need to hand over large amounts of personal documents when applying for rental properties.
Instead of giving a real estate agent copies of a driver’s licence or passport, applicants will confirm their identity online with the click of a button.
They will also be able to use the CDR to show they can afford the rent.
CDR is the legislative, regulatory and standards framework for consumer data portability in Australia and gives consumers the right to share their data between service providers of their choosing. CDR is now active in banking and energy.
Instead of handing over bank statements or payslips, renters will securely share verified financial data directly with a rental agent.
Finance Minister Katy Gallagher said the process would reduce paperwork and limit how much personal data renters needed to share. She said it would be faster, safer and easier for everyone involved.
“Applying for a rental shouldn’t take hours and it shouldn’t require mountains of sensitive information like your passport and fortnightly pay slips,” Senator Gallagher said.
“This pilot is a no-brainer. It will make people’s lives easier, reduce the risk of data theft, and reduce the burden placed on the real estate industry.
“This is the latest example of our government’s focus on using technology to drive better outcomes for people and businesses alike.”
Housing Minister Clare O’Neil said the initiative built on steps already taken to strengthen renters’ rights across the country.
“National Cabinet’s Better Deal for Renters is driving change in every state and territory,” Ms O’Neil said.
“As a result, most states have now banned ‘no grounds’ evictions, limited rent increases to once per year and set minimum rental standards.”
One Canberra renter, who wished to be only identified as Georgie, said the new system would be a far easier way to get a rental lease.
Georgie and her roommates applied for more than seven rental properties before securing their current house.
“It took quite a few hours to get all of the documents together to prove my identity and that I can afford the rent,” she said.
“As I lived away from home in university college, I had to ask my college for documents, my workplace, my parents, et cetera. Having to wait for references and documents from my college and workplace took a few days.
“The most frustrating part was collecting all the documents to submit for the first application. Once you did it once, it was easy to do it again, but I remember the first application took days for us to complete.
“I don’t love the idea of sharing private documents, and I work in cyber security, so I am more aware of the risks. However, it is something I had to come to terms with when applying for rental properties unfortunately.”
The trial using MyID and the CDR service aims to provide numerous benefits by streamlining the rental application process.
Georgie said students who worked full-time jobs would find it particularly helpful.
Assistant Federal Treasurer Daniel Mulino said the program offered new opportunities for the government to work with industry to demonstrate impactful and cost-effective solutions for consumers and services across the economy.
“This pilot will help to better protect the personal information of consumers and save them time when accessing important services such as housing,” he said.
“It will also give government an opportunity to make sure we’ve got the settings and regulation right to support investments by business in these solutions.”
