A Victorian landlord has been fined £12,000 for requiring tenants to use a third-party payment platform that charged fees, in a case that highlights growing concerns over rent-tech practices in Australia.
The landlord, who was not named, was penalised by the Victorian Civil and Administrative Tribunal after a tenant complained about being forced to pay rent through the Ailo app, which imposed a service fee of £4.83 per month. The tribunal found that the landlord had breached the Residential Tenancies Act by not offering a fee-free payment option.
Rent-tech platforms like Ailo, OurProperty, and Snug have proliferated in Australia, with nearly 60 products on the market. Critics argue that these apps often shift costs onto tenants in a tight rental market where they have little power to refuse. A 2023 Choice survey found that 41% of renters felt pressured to use such platforms by their agents or landlords.
While the platforms claim to offer convenience, tenant advocates say the fees are unjustified. Joel Dignam, executive director of Better Renting, stated: 'What frustrates me is these companies have this spiel that they are for renters – but they are very much for landlords.' The case has sparked debate over who should bear the cost of rent payment processing.
