Renters Are Being Asked to Pre-Apply Before They Can Even View Properties

Have you ever wanted to inspect a rental property but been told you must get “pre-approval” first?

Prospective tenants in Australia being asked to “pre-apply” before they can even view a rental is on the rise, and not only is it time-consuming and blatantly unnecessary, it’s a way to collect our data.

One Melbourne renter who spoke to Guardian Australia last week, said they tried to see a property in Preston but were told they needed to pre-apply through an online platform called 2Apply. The renter had to provide proof of their identity – including photos of driver’s licenses or similar documentation – their recent rental and financial history, and at least two references.

The property listing said: “Once pre-approved our friendly team will contact you to organise an exclusive private inspection at a time that suits you.” 

But who’s collecting and storing all that data?

2Apply is owned by Inspect Real Estate (IRE), which, according to its website, is an Australia-based global software company that specialises in tech solutions for the real estate industry.

“From booking inspections, managing applications, tracking keys and many other time-saving products designed to streamline an agent and property manager’s daily tasks,” the website reads.

“Our products address the day-to-day frustrations encountered in the property industry and are designed to help users save time and be more productive.”

IRE seems to do a lot, and has “assisted more than 100 million property enquiries on behalf of more than 3,000 real estate agents in every Australian state, New Zealand and the United Kingdom”.

Its 2Apply app uses the software of Inspect Real Estate to collect information. The rather basic 2Apply site disclaims:

“Both organisations use and disclose the information to provide property-seeking related services to you and third parties. IRE uses facilities that may store the information overseas. The real estate agency may deal with information in ways not covered by IRE’s privacy policy.” 

In other words, no one affected really knows what’s happening to their data, but one thing’s for sure: it’s valuable.

The Renters and Housing Union said pre-approval became common during lockdowns in 2020 when Australia’s rental vacancy rates started to drop. Rental vacancy rates look at how many rental properties are listed on the market as available and ready for someone to move in, so when that drops, demand is rising. 

Rental vacancy rates hit a record low last year and have not recovered. 

Property research group CoreLogic has also found the length of time rental properties are even on the market has dropped from about 28 days in march 2020 to 19 days last month for a typical rental in Sydney. 

Meanwhile, amid all this demand, rental prices have rocketed. The median rent in Sydney as of June 12 is $786 a week. Melbourne is $584 and The combined capital city average across Australia is $665. 

If you like to absorb information aurally too, here’s our video breakdown on VICE’s Australia Today TikTok channel.