Choice RentTech report is biased and may leave renters behind

Snug.com, 26 APR 2023

Snug’s mission is to make renting easier by streamlining the rental application process, improving housing access and encouraging long term leases.

Snug welcomes the scrutiny and renter advocacy contained in the Choice RentTech report released 19 April 2023, however, Snug is disappointed that the Choice report fails to recognise, the tremendous benefits to renters that technology has and can deliver, the existing safeguards in place to protect consumers as well as the progress of the industry and best practice.

Snug’s rental application form provides renters choice, convenience and control over their data and rental journey, The Snug platform delivers improved service levels, faster decisions, transparency and more interactive experiences. Since launching, over 1.5m renters have used Snug, and we have halved the time for renters to complete an application and tripled response rates to renters.

The Snug rental application form is free for renters and property managers. Snug offers renters the choice to purchase an optional Background Check which can strengthen a renter’s application by validating their identity, renting and financial details such as company directorships, visa work rights, bankruptcy. Around 1 in 10 renters purchases the $16.99 report which is valid for 6 months and reusable. Snug believes renters should have the choice to access Background Checks if they wish in a non-coercive and voluntary environment. Snug opposes proposals to ban voluntary Background Check purchases as some renters will be disadvantaged and inconvenienced particularly self employed, migrants or new renters with limited history.

Snug takes data security and privacy very seriously and protects renters with best practice data security, encryption and storage in Australia, as well as automatic deletion at 60 days of sensitive information such as ID and income documents. Snug continues to reduce the scope of data collected and transition the industry to lighter applications, a significant improvement from the traditional paper applications. Choice failed to fully represent the current options available to consumers to manage their data, have visibility on who accesses their data as well ability to delete information or their profile entirely. Snug welcomes discussion and consultation around data protection and responsible deletion across all industries, including real estate.

The Snug Match Score is an unbiased non-discriminatory objective measure and does not use protected attribute data, nor social proxy data. The score is presented to renters and property managers alike and promotes form completion, encourages long term leases and provides no advantage to an applicant by offering higher rent. The Snug Match Score is just one indicator within a rental application that property managers may consider when selecting a prospective tenant. All applications and information submitted by a renter are presented to the property manager. Snug welcomes balanced discussion around emerging AI technology supporting decision making to improve efficiencies and deliver better outcomes in the rental market.

Since 1 January 2023, Snug’s Net Promoter Score has doubled as renters respond to Snug’s continuing platform innovation, robust data security practices and customer service. Snug is making it easier for renters in a tough rental market that is impacted by a chronic lack of housing supply.

Snug believes that the Privacy Act, Discrimination Act and Spam Act as well as various regulations covering the real estate industry provide robust and sufficient protections for consumers. Snug is confident stakeholder concerns can be addressed with industry guidelines and training. Healthy competitive markets drive consumer welfare and non-regulatory methods should be the first measure to expand markets and promote innovation.