Tenants Frustrated by Rise of Third-Party Rental Payment Apps
Tenants across Australia are expressing frustration over the increasing use of third-party RentTech apps for paying rent, which can result in hundreds of dollars in fees annually. Over 7,000 renters have signed an online petition calling for changes to rental laws to prevent real estate agents from pressuring them into using these apps.
Case in Point: Margaret’s Experience
Margaret, a tenant in New South Wales, was instructed by her real estate agent, Ray White, to start paying rent through the Ailo app. Despite being told it was the only accepted payment method, she found the process cumbersome and costly. Ailo, co-founded by Ben White, a former Ray White director, charges fees for direct debits and credit card payments, leaving Margaret to navigate a tedious fee-free option.
“The Ailo app was presented as the only accepted method for paying the rent,” Margaret claimed. “No other options were mentioned. We were told that we had to use the Ailo app from then on. It’s ridiculous. It should not be allowed.”
Under current New South Wales rental laws, tenants must be offered one fee-free method to pay their rent. However, Margaret found the only fee-free method provided by Ailo to be unnecessarily difficult and time-consuming. She must set up a one-off transaction each month, which takes two days to process.
Wider Issues and Responses
Ray White’s spokesperson denied that tenants were being forced to use the Ailo app, stating, “There is a choice on how to pay the rent, no one is being forced to use the Ailo app.” Ben White, Ailo’s co-founder, claimed that 40% of renters used the app without incurring fees and that Ailo offers the widest range of payment options for renters.
Similarly, Queensland renter Warren faced pressure to use the OurTenant app for paying rent, which also charges fees for credit card payments. After pushing back and citing Queensland rental laws, Warren managed to continue paying rent through his preferred method.
Advocates and Experts Weigh In
Leo Patterson Ross, CEO of the NSW Tenants’ Union, highlighted the broader issue of renters feeling powerless, particularly amid the housing crisis. “People don’t feel like they have a lot of choice,” he said. “We’ve got people who are desperate for a home. So they will kind of be pushed into using anything, even if it’s unclear whether it goes against regulations.”
Ross emphasized the need for clearer laws and better regulation. “The problem is that the regulators aren’t given the resources to actually regulate the current rules, let alone looking at what’s coming down the pipeline,” he said. “It’s very disappointing, very frustrating for a lot of people that this hasn’t been addressed.”
Calls for Change
The Australian Physiotherapy Association (APA) has underscored the urgent need for accessible and appropriate pain management strategies for tradies, who face significant health risks due to workplace injuries and chronic conditions. This call for action echoes the sentiments of tenants seeking relief from the burdens imposed by third-party rental payment apps.
Tradies National Health Month, observed every August, aims to highlight the unique position of physiotherapists in preventing and treating musculoskeletal issues that plague tradies. Similarly, tenants are calling for a re-evaluation of the practices surrounding rental payments to ensure fair treatment and prevent additional financial strain.
Conclusion
The rise of third-party rental payment apps has sparked significant frustration among tenants, who feel pressured into using systems that incur unnecessary fees and complications. As the debate continues, there is a growing call for clearer regulations and better enforcement to protect renters’ rights and ensure fair practices within the rental market.
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