Host - Belinda Heit – Communication and Education – RTA

Guest – Cassie Chow – Education – RTA

Host: So you've made the decision to start renting or begin looking for a new rental property. As you search for your new home, you'll be required to submit tenancy application forms. With this process, what are some important things to be aware of?

Today we're going to unpack what you need to know about applying for a rental property, including information about searching for a rental property and making a tenancy application. Joining me today to help us understand this topic is Cassie Chow. Welcome, Cassie.

Guest: Hi, Belinda. Thanks for having me here today.

Host: Now, can you tell us about yourself and your role at the RTA?

Guest: I started at the RTA in our Contact Centre, taking bond and tenancy related enquiries from tenants, property managers and owners, before moving into our in-house quality and training team for a while, and then into my current role as a senior community education officer in the RTA education team.

Our team is responsible for delivering information and education to the rental sector to help everyone involved in a tenancy to understand their rights and responsibilities, as well as raise awareness for the free services the RTA offers to help them.

Host: Yes, and you're very busy in doing so. Now, today we're talking about what happens before we start renting in Queensland. And what I'm curious to know is what we need to consider when we're looking for a property.

Guest: That's a good place to start, Belinda. When someone is looking for a rental property, it's important they consider what their needs are and what type of property suits their lifestyle and budget

The RTA has a checklist of questions to help prospective tenants on our website, and we do encourage people to refer to this. So some key factors to consider might include:

• Is the property the right size?
• Is it in the right location for work, study, transport and social activities?
• Does the property have the facilities needed? So for example, does it have NBN connection, air conditioning, a garage or car park?
• Does the tenant have to pay for water usage or any other costs?

There are also rules around advertising of the property and rent bidding. So in particular, some things to be aware of are, well, firstly, the property or room must be advertised at a fixed price. What this means in a practical sense is that there can't be a price range, such as $500 to $600 per week, or no price, or a note saying the rental price is up for negotiation or up for rent auction. The price doesn't have to be displayed on a for rent sign at the property, but any other advertisement must include a fixed price.

Secondly, the managing party, which means the property manager or owner, or anybody else involved in the renting process, cannot solicit, invite or accept an offer of rent higher than the advertised price, even if a tenant has proactively offered more.

This also applies to rent in advance. There's a maximum prescribed amount during the application process, and an owner or manager is not permitted to accept more.

For people's awareness though, I will add that after the tenancy agreement has been signed and taken effect, then the tenant may offer more rent in advance than prescribed under legislation and the managing party may accept. So for instance, if the tenant is going overseas for 2 months and wants to pay their rent in advance prior to going away, then they can do that and the managing party may accept.

And the last point here is that an individual, whether they are an applicant or any other person, can anonymously report to the RTA a rental property or room that has not been advertised at a fixed price by completing an online form on the RTA website.

And I'll add too, for prospective tenants to always do your homework. Inspect the property first if you can. Ask questions if you're not sure of anything and be aware of rental scams.

Host: Yeah, it's a lot of things to look out for nowadays. Now, I've heard a bit about a standardised tenancy application form here in Queensland. Now, can you tell us a bit more about that?

Guest: Yes, absolutely. So a property manager or owner must use a standardised application form as outlined under Queensland tenancy laws. For general tenancies and movable dwellings, this is the RTA Rental application (Form 22). And for rooming accommodation, it's the RTA Rental application - rooming accommodation (Form R22). And copies of these forms are available on the RTA website.

Host: And what if it doesn't?

Guest: Failing to comply with the application process requirements under the Residential Tenancies and Rooming Accommodation Act 2008 (the Act) is an offence. This includes not only the requirement to use the standardised form, but rules around application submission methods, information that cannot be requested, and requirements relating to the collection, storage and destruction of personal information.

I will add, however, that the requirements relating to the tenancy application process do not apply to certain lessors, such as a social or community housing organisation. These exemptions are defined under the Act.

Host: So when it comes time to submit that application, what do we need to know?

Guest: There are a couple of aspects to be aware of, actually. The first point to make is that a managing party must provide at least 2 ways for the application form to be submitted. And the second point is that at least one of these ways must not be restrictive.

Host: Now, I always love to ask this question, what do you mean by not restrictive? What is a restrictive way?

Guest: Yeah, great question. It means a way that requires the applicant to provide their personal information through an online platform to someone who is not the managing party, but who is collecting information on behalf of the managing party, or a method that incurs a cost to the applicant, such as an application fee or cost to conduct a background check.

Host: Gotcha.

Guest: Now, something to note here is that if the application form is available online or via email, but the applicant provides their personal information directly to the managing party, as opposed to a third party acting on behalf of the managing party, then it's not considered a restrictive way under the Act.

Host: Clear as mud. Okay, so let me confirm from my understanding that I got this right. The managing party can ask the applicant to submit their application via a third party platform as one option, but if so, then the second option they provide must be non-restrictive.

Guest: That's correct. Yeah. The Act doesn't prohibit the use of online third party platforms for applications, but if the managing party does choose this way as one option, then the other option must be not restrictive.

So in a nutshell, it's about making the application form available and accessible for prospective tenants, which can include submitting via email or in person, as well as the option of online platforms.

Host: So what kind of information can be requested during that application process?

Guest: Well, to put it simply, the questions on the standardised tenancy application form are the only questions that can be asked of an applicant. So if our listeners would like a list of the information that is able to be requested, they can check out the RTA's Form 22 or Form R22 on the RTA website.

I will note that when it comes to references, the Act does not specifically define what type of questions can or cannot be asked to referees. However, we would ask managing parties to remember that the aim of collecting information during the application process is to assess an applicant's ability to meet their tenancy obligations. That is, the ability to pay rent and the ability to maintain and look after the premises.

Host: Yeah, that's important to focus on, isn't it? Now, you've mentioned collecting information from a referee. I'm interested in finding out whether a managing party can access any other systems like a tenancy database to help with making a decision about whether someone can be approved as an applicant. What's the deal there?

Guest: While the Act prohibits managing parties from obtaining certain information from an applicant, it doesn't extend these restrictions to third parties or other entities, such as tenancy databases. So therefore, a property manager or owner may use the information gathered from these sources as part of assessing an applicant.

As I did mention just before though, Belinda, the goal of the application process is to gather information that would assist in determining an applicant's suitability as a tenant. The RTA encourages managing parties to keep this in mind when accessing external sources for information.

Host: So if there are rules around the information that can be requested, are there also rules relating to information that can't be requested during that application process?

Guest: There are. The Act makes specific reference to certain pieces of information that a managing party is prohibited from asking. Now these are:

• legal action taken by the applicant, including any dispute resolution or matters considered by the Queensland Civil and Administrative Tribunal
• notices to remedy a breach, either given to or by the applicant
• rental bond history, including any claims on a bond, and
• statements of credit accounts or bank transaction details.

Host: Now Cass, you know how much I love playing devil's advocate here.

Guest: I do.

Host: What if the applicant chooses to provide further information to support their application beyond what's asked?

Guest: That's a good question. Applicants may choose to provide information beyond what can be requested under the Act. For example, they may have more references or other documents they wish to provide to help with their application. And if it's volunteered, the managing party may still accept the documentation without being in breach of the Act.

I do want to emphasise, though, that applicants are not legally obligated to supply extra information or documents beyond what is specified under the Act.

Host: Yeah, it's good to know that so that you don't go too far. Now, well, thanks so much for that info, Cass. Now, it's important for applicants to be ready with their supporting documentation, isn't it?

Guest: Certainly is. If you want to get your application in quickly.

Host: Yeah, well, it helps turn it around quick, doesn't it? Now, are there any rules around that though?

Guest: Yes, there are. Under the law, the managing party may request up to 2 types of documents in each of 3 categories, which are:

1. verification of identity
2. the applicant's financial ability to pay rent, and
3. suitability for the tenancy.

There are also rules around ways to provide supporting documentation. The Act specifies that the applicant can provide their documents by providing a copy of the original or by allowing the managing party to cite the original document in person. Managing parties can record the details of any document cited in person, though.

Host: Now, talking of making and keeping copies of information, what's the deal with storage of applicant information?

Guest: Well, the Act specifies that personal information collected during the application process, and that includes documents assessing the suitability of applicants, must be securely stored.

They must also be securely destroyed. And there are specific time frames relating to this, which are 3 months if the applicant is not successful or does not proceed to a tenancy for any other reason, or within 7 years after the end of the tenancy for applicants who do proceed to a tenancy and therefore become a tenant or resident.

Now, it's important to highlight 2 things. Firstly, it doesn't matter whether the information has been recorded digitally or physically. It must still be securely stored and then destroyed. And secondly, it must be removed from everywhere there's a record of it.

Host: Yeah, well, I'm glad to know that, given the environment we live in nowadays and the security of our personal information.

Guest: Yes, absolutely. It's really important. One thing that I do want to add on this topic, though, is that the RTA cannot provide information about privacy laws that fall outside of the scope of the Act.

Host: Good to know. Now, if our listeners would like more information about applying for a rental property, where can they find resources?

Guest: We have plenty of information about today's topics on the RTA website, not only on our web pages, but in the form of fact sheets that can be downloaded, short videos and recorded webinars. That's always a great place to start. And remember, it's always recommended to use the forms available on the RTA's website to ensure that you have the latest version.

Host: And it absolutely is. Well, it's been great chatting with you as always, Cass, and learning more about applying for a rental property.

Guest: Thanks so much for having me.

Host: Thank you for listening to the Talking Tenancies podcast. For more information about the Residential Tenancies Authority, visit rta.qld.gov.au.