Can real estate agents check your rental history?

You discover the right home after a months-long search, complete the proper paperwork, and raise the cash for your bond. Finally, the home is yours according to the real estate agent’s terms and conditions.

Not so quickly. Finding the ideal rental home is only half the battle when looking for a new place to live. Securing the home is a very different story.

Before recommending you to the landlord, the real estate agent would most likely check to see if you’re on one of Australia’s tenancy databases. If you are, your new landlord may pick another candidate over you as a prospective tenant.

What exactly is a tenant database?

Tenancy databases, also known as tenant databases, are privately held lists that include information on a specific person’s renting history. If you’re on the list, you were probably reported by an agent or landlord for breaching the conditions of a prior lease.

There are several businesses that administer and maintain these listings, and most real estate brokers belong to at least one of them.

Renter databases, sometimes known as “blacklists” or “bad renter databases,” include information on some tenants’ rental histories. Renter databases may still be referred to as tenant databases because renters were previously referred to as tenants.

A rental provider (formerly known as a landlord), or a real estate agent, can pay a membership fee to access a database that allows them to:

List former renters and search for and filter new renters. There are laws regarding the usage of tenant databases, and renters have rights regarding their listings.

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Informing potential tenants about databases

Anyone applying to rent a property from a rental service or real estate agent that uses a renter database must be informed of this. They must do so in writing and include the details with the Residential tenancies rental application form.

They should also mention the organization that manages the database’s contact information for the property manager.

If a rental provider or estate agent discovers the information of a renter who has applied to rent a property from them in a database, the tenant must be informed that their information is listed on the database,

what the information in the database is, the name of the database, and who listed the information, and how they can check, change, or remove the listing by contacting the person who listed them.

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This must be done in writing by the rental provider or estate agent within 14 days. There are serious consequences for failing to inform people applying for leases about databases when they apply for a rental property.

What do Real estate agents serve?

Real Estate Agents and private landlords utilise tenancy databases to ensure that potential renters are trustworthy and likely to be respectful of their rental property. If you’ve never broken your rental agreement or done anything wrong in the eyes of your agent or landlord, you’re unlikely to be mentioned by database operators.

What may cause me to be blacklisted?

Except in the Northern Territory, rigour regulation prohibits a landlord or agency from placing you on a rental blacklist without a valid reason. While state laws vary, in general, you may only be blacklisted at the conclusion of your lease. And only if you owe more rent than your bond, or if a court or tribunal order requires you to be mentioned.

Failure to pay rent

It’s always a no-no. When you fail to pay your rent, the landlord is forced to repay the bills out of your own money. While an occasional payment that is a day or two late is unlikely to get you a listing, frequent late payments may.

It’s fair to presume that you’ve been listed if you’ve previously abandoned a residence owing rent that exceeds the amount of your bond.

Property damage

Your landlord and their agent will be furious if you cause damage to their property via negligence or carelessness.

While you are not responsible for normal wear and tear on your rental, you will usually be held liable for any other damage you cause. If you do not address it, you will most likely be placed on the tenancy blacklist.

Leaving your bond to repay back rent

This is a typical error made by first-time renters. Tenants must pay their rent in full and must not rely on a rental bond to settle any unpaid amounts. After the landlord signs off on an approved final condition report, your bond should be reimbursed to you.

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When renters do this, it is usually because they have not read their rental terms. Even if it was an unintentional error, it might place you on the tenancy database and cause you trouble in the future.

If you have any doubts, talk to your agent, seek legal counsel, or contact your local civil and administrative tribunal.

What happens if I’m going to be included in the list?

Before listing you on a tenancy database, an agent or owner must either notify you in writing, or take reasonable measures to notify you. This provides you with time to file an appeal.

If you are mentioned, your prospects of finding a new place to live may be harmed. So, what are your options?

Pay within three months

If you owe money for past-due rent or repairs, you have three months to pay before your name is taken from the database.

Having trouble paying your rent?

If you believe you will fall behind on your rent because you have lost your job or are experiencing financial difficulties, we urge that you notify your agent as soon as possible.

How long will my name be on a rental blacklist?

If you’ve discovered yourself on a tenancy database, don’t panic; there are options available to you.

Here’s what you should know about removing your name from a national tenancy database:

After the outstanding balance is paid, your name should be deleted within three months.

If you take more than three months to pay any outstanding payments, your name will stay on the list, but after the obligation is settled, the status will change to paid.

After three years, your name will be automatically erased; otherwise, the operator will be penalised.