Rental apps

Some renters are being told they need to use a rental application (app) to pay their rent, for example, Alio and Kolmeo. Rental apps are also called rent tech or rent tech platforms.

However, there can be issues with rental apps, including:

• Charging additional fees if rent is paid in certain ways, such as by BPAY or credit card
• Charging additional fees when there is an error in the payment, or in other circumstances
• Having terms and conditions that allow the app to use your data in ways you do not want, such as giving your details to ‘promotional partners’

It’s always useful to read the terms and conditions and privacy policies before you use a rental app.

Landlords, agents and anyone who owns or operates a related third-party business – such as a business operating a rental app – must follow rules for collecting and using your personal information. Learn more about these privacy laws on our page on privacy while renting.

Note that all the sections in brackets on this page, such as [section 42], refer to Victoria’s Residential Tenancies Act 1997. References in brackets to regulations, such as [regulation 19], are to the Residential Tenancies Regulations 2021. See the end of this page for links to all of these.

The landlord or agent may be breaking the law if they insist on you using a rental app to pay rent.

The law says that landlords and their agents are prohibited from requiring you to use the services of a third-party selected by them (other than for an embedded network for your utilities).

You may choose to, but you cannot be required to use it – even if it is free.

If you have been requested or required to use a rental app by your landlord or agent and want to challenge this, you can use our template letter: Rental app letter to agent or landlord [Word].

It is against the law if the landlord or agent does not give you an option to pay rent in a way that does not result in you being charged any extra fees [section 42].

Under the law, the landlord or agent must allow you to pay rent:

• In a way that does not result in you being charged any extra fees, apart from your usual bank fees
• By electronic funds transfer (EFT)
• By Centrepay, if you are receiving Centrelink payments [section 42, regulation 19]

It is also against the law for landlords, agents or anyone else, including a third-party business, such as a rental app, to charge for the first issue of a rent payment card or for establishing or using direct debit facilities or any other electronic payment facility for rent payments [section 51].

The landlord or agent must also tell you about any costs or fees – including transaction fees, failed direct debit fees, or fees charged by them or any third party – before you agree on the payment method to pay your rent. For more information on paying rent, see our page on starting a tenancy.

From 31 March 2026, any person who owns or runs a third-party business that operates a website or technology, such as a rental app, for rental applications and rent payments must not charge you a fee for:

• Applying for a rental property
• Background checks
• Tenancy or lease history checks
• Credit checks
• Tenancy or lease database checks
• Identity verification
• Administrative costs
• Failed payments
• Paying rent (other than payment surcharge fees allowed under any other law)

Even if the landlord or agent uses technology operated by a third-party business for applications and rent payments, it is an offence for the third-party business to demand or receive a fee from you for any of these activities.

Banks are exempt from this rule and can charge their usual fees for services under banking laws.

It against the law for a landlord or agent to include a prohibited term in lease (officially called a rental agreement) [section 26A].

Prohibited terms include any that require you to:

• Pay rent in advance in a way that forces you to pay fees, apart from your usual bank fees
• Use the services of third-party service providers, such as a rental apps, or having to use a specific cleaning company when you vacate. The only exception is when there is an ‘embedded energy network provider’, where power is supplied jointly, such as to an apartment block [section 27B, regulation 11].

If a prohibited term is included in a lease, it will be ‘void’ and cannot be enforced by the landlord or agent [section 26A].

If the landlord or agent refuses to remove any prohibited terms you can apply to the Victorian Civil and Administrative Tribunal (VCAT), which can order that a term in your lease is ‘invalid’ [section 28, section 472].

For more information, see our page on rental agreements (leases).

It is an offence for someone to make a false or fraudulent misrepresentation or statement about your rights and duties under the Residential Tenancies Act 1997 or your lease [section 501].

For example, if the landlord or agent tells you that you must use a rental app to pay rent this could be a misrepresentation under the law, particularly if they do not give you any other option to pay rent in a way that does not make you pay any extra fees, which is your right.

It is also generally prohibited to engage in false or misleading conduct in relation to the sale of goods and services under the Australian Consumer Law [section 18, Schedule 2, Competition and Consumer Act 2010 (Commonwealth)].

You can report offences to Consumer Affairs Victoria, which can issue an infringement notice on the landlord or agent if they failed to follow the law.

You can call Consumer Affairs Victoria on 1300 558 181.

Alternatively, you can report offences to Consumer Affairs Victoria online.

If you need help, contact us or your local Tenancy Assistance and Advocacy Program (TAAP) service.

Rental agreements (leases)
Applying for a rental property
Starting a tenancy
Privacy while renting
Complaints about rental providers and agents