Can my landlord refuse my rental application because of my ethnic background?

The situation

I am currently living in Melbourne, Victoria, and I have been searching for a new flat for about three weeks now. On the 12th of October, I found a lovely two-bedroom apartment listed for $550 per week. I submitted my formal application along with my payslips showing a steady income and a perfect rental history from my previous agent. Two days later, the property manager called me and said they had decided to go with another applicant. When I politely asked for feedback to help my future searches, they were very vague, but a friend who was also viewing the property mentioned that the agent made a comment about preferring 'local families' who 'fit the neighbourhood culture' better. I have already tried emailing the real estate agency to ask for a specific reason for the rejection, but they haven't replied to my message. I feel like I was treated differently because of my national origin and the way I speak, even though my financial documents were all in order. I am unsure if it is actually against the law for them to pick someone else just because they want a certain type of person in the building, even if my paperwork was perfect.

Detailed Analysis

Based on the facts you provided, the real estate agency's actions may violate the Racial Discrimination Act 1975. The law states that it is unlawful for a person, acting as an agent, "to refuse or fail to dispose of any estate or interest in land, or any residential or business accommodation, to a second person"^[1] by reason of that person's "race, colour or national or ethnic origin"^[1]. In your case, if the agent's comment about preferring 'local families' who 'fit the neighbourhood culture' was a way to exclude you because of your national origin or the way you speak, this would constitute unlawful discrimination.

Furthermore, the law prohibits a person from treating someone seeking accommodation "less favourably than other persons in the same circumstances"^[1] based on their race or ethnic origin. Since you mentioned your financial documents, including payslips and rental history, were in order and met the requirements, being passed over for someone else due to 'culture' or 'local' status suggests you were treated less favourably because of your background.

It is important to note that the law also makes it illegal to "impose or seek to impose on another person any term or condition that limits, by reference to race, colour or national or ethnic origin, the persons or class of persons who may be the licensees or invitees of the occupier"^[1]. This means an agent cannot try to curate a specific 'type' of person for a building based on their ethnicity.

Whether this is a proven violation depends on whether the agent's decision was actually motivated by your background or if there was a legitimate, non-discriminatory reason for choosing the other applicant (such as a higher income or a different move-in date) that has not yet been disclosed. State, provincial, or local laws in Victoria may add further rules regarding rental applications and discrimination.

Statutory Citations

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