THE Real Estate Institute of Queensland (REIQ) is strongly opposing the state’s new standardised tenancy application form, which the peak body says takes tenant privacy to the point of impracticality.
From May 1, the standardised rental application will be used for general tenancies. This reform is part of the former State Government’s stage two rental reforms, now carried forward by the LNP.
The REIQ believes the form’s approach to verification of identity (VOI) could cause significant risk for property owners and their managers.
The peak body is also warning the application form may undermine the prospects of success for applicants seeking to rent property in Queensland.
REIQ CEO Antonia Mercorella said the most glaring issue with the proposed form was its wording in relation to requirements surrounding VOI.
“The form positions VOI in such a way that it would have applicants believe that they should exercise their right to refuse to provide proof of identification to support a tenancy application,” Ms Mercorella said.
“While we respect the right to privacy, it is in the best interests of tenant applicants to provide proof of identification, in line with property owner and overall community expectations.
“You can’t so much as open a library account to borrow a book without needing to show identification to confirm your identity.
“The same goes for checking in to a hotel, hiring a car, renting a scooter, and joining a gym where providing ID is routine because it serves an important purpose in protecting against damage and theft and ensuring safety and compliance.”
She said it was ludicrous to think a person should have the right to rent such a valuable asset without the need to prove they were in fact the person stated in the application form.
“Property managers who are responsible for managing the vast majority of tenancy relationships in Queensland, may be negligent if they approved an application from a person who was unwilling to prove their identity,” Ms Mercorella said.
“No property manager with an ounce of professional integrity or respect for the fiduciary obligations they owe to their client would offer a rental property to a total stranger.”
Ms Mercorella said the REIQ believed the current wording in the form was setting up tenants for failure by creating a misleading expectation that they would be able to secure a rental property without providing ID.
“While the new laws, commencing 1 May make it clear that an applicant must expressly consent to copies of their ID being retained in the circumstances where they will only agree to have their ID sighted, the new application form goes much further than this by directing the tenant to potentially refuse to provide documentation to verify their identity,” she said.
“We’ve been travelling the state on a roadshow to educate property managers about the upcoming stage 2 rental reforms and they’ve expressed disbelief at the way these laws seek to limit the gathering of fair and reasonable evidence as part of tenancy application due diligence.
“When assessing a tenancy application, two critical factors must be considered; the applicant’s means to meet the financial obligations under the tenancy agreement, and the applicant’s ability to take care of the property.
“By limiting the information that can be obtained to reasonably determine these matters puts all stakeholders at risk – the owner, the tenant and the property manager.”
In addition to concerns regarding VOI aspects of the form, the REIQ is also concerned by the overall tone of the form which appears to lack objectivity and guide tenants outside legislative parameters.
Additionally, the REIQ has expressed concerns about a number of impractical issues that the form creates. This includes requiring co-applicants to use one form to apply for a property triggering privacy related issues for co-tenancy applications.
Ms Mercorella said that when the concept of a standardised tenancy application form was first raised, it had been supported by the REIQ, but what has materialised is unacceptable.
“As the real estate peak body, we were assured we would be consulted on the development of the application form, but it has been released with no consultation,” she said.
“The REIQ has now provided feedback – including its strong opposition to the current form – and we implore the Government to revise the document before it’s too late.”
The peak body has also expressed its dismay at the apparent disconnect between the state and federal government in relation to fraud and anti-money laundering prevention.
At a Commonwealth level, real estate professionals will soon be required to undertake extensive identification checks to confirm identity of parties to real estate contracts.
