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Tenancy databases in the context of tenure management: risk minimisation and tenant outcomes in the private rental sector

Summary

Project Number: 20094
Research Theme: Private_rental
Project Leader: Minnery, John
Funding Year: 2001
Research Centre: Queensland

Research & Policy Bulletin

Issue 046: Tenancy databases and risk minimisation

Variable data quality standards and less than transparent listing procedures limit the effectiveness of tenancy databases and result in private renters and - potentially - the public housing system, bearing the risk associated with tenancies.

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Description

As the continuing acquisition of social housing declines in Australia, people on low incomes and those with complex needs are increasingly dependent on the private rental market for long-term housing. The resulting polarisation of clientele, in combination with a relatively poor quality of tenancy management, produces a tendency to conflict and disputation between landlords and tenants. In this context, risk minimisation is likely to become an increasingly important feature of tenure management in the private rental field. This is consistent with Ulrich Beck's account of the emergence of a risk society which must now deal with the uncertainties and ambiguities that arise from dynamics such as social polarisation. Within this framework, this research examined the emergence of tenancy databases - their uses and impacts - in the context of key issues of tenure management in the Australian private rental sector.

To date, discussions on the role and impacts of tenant databases have focused largely on problems concerning lack of regulation of the databases, and have identified the need for legislative frameworks to address privacy issues. However legalist frameworks do not necessarily lead to a better understanding of the management contexts within which tenants are listed, and the impacts of listing on their future housing and tenure options. This research demonstrated that a tenure management perspective is crucial for understanding the operation and impact of databases in the private rental sector.

The research questions were thus framed in response to two key issues identified in Research Area 2.1: Housing Tenure and Management. They aimed to identify the performance of private real estate managers and private landlords with respect to problematic tenancies; and to examine outcomes of private rental tenure for those identified as high risk tenants. The research examined the following questions:

• What is the role of tenant databases in the context of broader risk minimisation strategies in the private rental sector in Australia, USA and Europe?
• What are the current management practices adopted by tenant databases in Australia?
• Are there uniform procedures or variations within Australia, and how do these compare with those adopted overseas?
• What processes and strategies are pursued by Australian private real estate and property managers (including estate agents and self-managing private landlords) to screen and minimise exposure to risk?
• What screening and risk management strategies are pursued by those landlords who do not have access to the databases, or who choose not to list tenants?
• What are the impacts on current and future housing and tenure options for tenants?

These questions have important implications for housing policy. The private sector is increasingly expected to provide housing for low-income consumers in a context where landlord/tenant conflict is likely to be prevalent. In this context, the issue of tenant databases is likely to have growing significance for housing policy as a means available to private real estate and property managers to minimise risk.

More Information

Final Report: No. 031: Tenancy databases: risk minimisation and outcomes
1299 KB PDF Document

Positioning Paper: No. 056: Tenancy databases in the context of tenure management: risk minimisation and tenant outcomes in the private rental sector
1.2 MB PDF Document

Research and Policy Bulletin: Issue 046: Tenancy databases and risk minimisation
86 KB PDF Document