Let's talk application screening

By Kristie-Lee Newnham

 

The most common question we are asked at every appraisal, how does your tenant screening process work? Selecting the most suitable tenant for your property is something we take very seriously, carrying out multiple checks in the screening process. Ultimately, landlords require stable, respectful tenants who are financially sound. The right tenant will be the difference between a positive investment experience and a stressful financial liability. Our experienced Leasing Department carry out the following checks with every tenancy application processed:

 

Employment and ID

Understandably, landlords will expect their tenant/s to have stable employment that shows they can afford and maintain rental payments. We request copies of recent payslips and bank statements which verify the source of income, a letter from the employer confirming the nature of the tenants' employment, and a phone call to confirm verbally. Asking the employer about their general performance and reliability can also be valuable in building a character profile. Sighting 100 Points of ID is essential - the applicant must provide copies of current documents, including passport, birth certificate, driver's license, Medicare card etc., as proof of their identity.

 

Rental history references (current & past)

An excellent predictor of tenants' suitability can be obtained by contacting the current and/or former real estate companies through which they have previously rented. Unfortunately, sometimes this information is falsified on the application, so it's a critical step in the screening process. If the applicant has not previously rented but was/is a property owner, we have access to databases which allow us to verify the ownership as well as ownership of any private rental references that may have been provided.

 

Tenant Interview

A series of questions directly asked of the applicant is a critical step in the application screening process. An experienced leasing consultant will ask them why they are moving, their employment, and their previous tenancies' history. If their responses don't correlate with the information provided on the application, this may be a red flag. On the flip side, the interview may also allow applicants to explain gaps in employment or legitimate grievances with former property managers.

 

Visa checks

Perth has a high number of skilled migrants who hold a variety of working visas. Even travellers on working holiday visas can apply for rental properties; however, they must be subject to the same screening process with the addition of valid visa checks. If their employment or previous tenancy referees are located overseas, this may deter landlords, as different time zones can draw out the application process.

 

Personal presentation at viewings 

There's no doubt that well-presented applicants will make a more favourable impression than those who are untidy in their appearance. It's also worthwhile noticing people's overall demeanour - are they on time or late? Are they respectful and courteous or arrogant and disorganised? Using our observation skills and making notes at this stage of the process is helpful when written applications are submitted.

 

National Tenancy Database check

This is generally the final check once an application has been screened and all the other criteria have been met. Suppose an applicant has been blacklisted, bankrupt or had a criminal conviction. In that case, it will appear on a National Tenancy Database search. It will also reveal court-related issues, including summonses, upcoming matters or outstanding monies owed. Such findings may not necessarily preclude an applicant from securing a property; however, it's best to be aware so that the landlord can make the final decision knowing all the facts upfront.

 

Guiding our landlords in making the most informed decision regarding tenants is our passion!