4 Property Management Tenant-Screening Tactics

property management tenant-screening

Utilising Proven Property Management Tactics to Attract the Right Tenants

If you decide to lease your investment property, you’ll want to attract good tenants who take proper care of it. A good managing agent has the skill and experience to screen and filter out tenants who don’t meet the required criteria. Here are some smart property management tenant-screening tactics that managing agents employ.

Detailed Tenancy Database Check

Private companies usually run tenancy databases, not the government or any administrative tribunal. Only fee-paying members (typically property managers and real estate agents) can access these databases filled with valuable tenant information. Several tenancy databases operate in NSW, including the National Tenancy Database, TICA and Trading Reference Australia. Certain guidelines have been set to ensure that the information listed on the database is legitimate and accurate. This ensures that agents have access to the right information at all times when it comes to screening tenants. Owners may not have the tools to access these databases on their own, which is where property management professionals add immense value.

Seeking References… and Calling Them

Seeking references and failing to follow up on them can result in poor tenant choices. A good managing agent takes the time to not only ask for specific references but will also do adequate due diligence and check up on them. A thorough reference check would include an employer (past or present), a colleague (past or present), a previous landlord or agent and a personal character-reference contact. Any tenant who fails to provide sufficient references should be treated with caution. Calling these references helps the agent verify that the information provided is accurate.

Checking Rental Application Details with a Fine Tooth Comb

Some tenants can embellish the information they include in their rental application. This can make them look good on paper, but the reality could be something entirely different. An experienced property manager will verify the details through a series of checks. This includes bank statement verification, employment proof, employer letters, tenancy history, previous rental ledgers and much more. Genuine tenants share this information readily with property managers who then assess its authenticity.

Verifying Income to Determine Rent Affordability

The last thing a landlord wants is a tenant who defaults on rental payments. Some tenants can lie about their income and job status on an application, which is why proper verification is key. An experienced real estate agent will verify income through checking bank statements, employer letters, credit checks and much more to establish whether a tenant can afford to pay the rent regularly. The idea here is to ensure a stable income from a legal source. For instance, you don’t want a drug dealer with plenty of cash on hand moving into your property. Verifying the debt to income ratio is also a good practice. This helps assess how much the tenant can afford to pay after fulfilling his or her monthly liabilities.

Screening tenants is a particularly useful exercise for landlords. An experienced managing agent like Murray Property will assist you with smart property management tenant-screening tactics.

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