Tenant database 'invades privacy'

Chris Martin, a senior policy officer with Tenants NSW, said the program was a break from the traditional service offered by the databases, which are operated by private companies and allow subscribing members to run a check, similar to a credit check, on a prospective tenant.

''It's not the traditional risk management exercise where you're screening a tenant,'' he said of the new service.

''This is all about agents getting tip-offs about what their current tenants are doing.''

Mr Martin said the service could be used by agents to scupper their tenants' new applications, particularly in regional areas with high vacancy rates.

''We believe this service is a gross invasion of people's privacy, and the potential for abuse is high,'' he said.

The service is provided free to TICA members - about 6000 agents and landlords.

TICA's managing director, Phillip Nounis, said agents were required to notify tenants they were using the service and said tenants who did the right thing and told their agents they were thinking of moving had nothing to fear. ''If an individual runs their tenancy without any problems whatsoever, they don't have to fear any type of database or anything like that,'' he said.

''It's only the ones who, for want of a better term, do the midnight skip.''

The Minister for Fair Trading, Virginia Judge, would not comment on the program yesterday but said that the government was tightening the regulation of databases to ensure they were only used to screen out problem tenants.

Under the new Residential Tenancies Act 2010, which comes into effect later this year, tenants can only be listed after the end of their tenancy, if they left owing more money than the bond would cover, or if their tenancy was terminated by the Consumer, Trader and Tenancy Tribunal.

"I don't want tenants to feel they are being victimised or threatened unfairly,'' she said.

Tenants NSW has complained to NSW Fair Trading about the program.