How to Screen Tenants
As a landlord or property manager in Perth, you must select the right tenants for your property. Learning how to screen tenants successfully can significantly reduce the likelihood of negative complications such as late rent payments, property damage, and the like. Here’s a comprehensive guide to navigating the rental application process.
Pre-Screening Questions:
Before the inspection, consider having a series of pre-screening questions. This could be sent to prospective tenants when they apply for the inspection. Doing this may help you get clarity on whether these prospective tenants are the right fit for your property. These questions may include:
- How long do they see themselves living in the property?
- Do they have any pets, and are they smokers?
- How many people will be living in the property?
These questions could help you identify whether an applicant’s intentions and expectations match yours, saving time for both parties.
At the Inspection:
The property inspection is also a good time to learn more about the potential tenants. Don’t underestimate the importance of a casual conversation. Don’t treat this as an official interview; however, light discussions can provide valuable insights. Why are they moving?
- What is their ideal living environment?
- How long do they see themselves living in the property?
These conversations may reveal important details that will help you evaluate whether the applicant would be a good fit for your property. Listen carefully for clues about their reliability and responsibility, which may not always be obvious on paper.
Proof of Income and Identification:
To confirm an applicant’s financial capability, request proof of income and identification. Common documents include:
- The last three pay slips – This shows the applicant’s current employment status and income stability.
- Employer references – Contacting their employer can provide additional verification of employment and reliability.
- Valid ID (Passport, Driver’s License, etc.) – Helps confirm the identity of the applicant and reduce the risk of fraudulent applications.
This step ensures that the applicant has the financial means to meet their rental obligations.
Reference Checks:
References from previous landlords or employers are essential in assessing a potential tenant’s history. Be sure to check:
- Rental references – Speak to previous landlords to confirm the applicant’s rental payment history, upkeep of the property, and whether they were good tenants.
- Employer references – An employer reference can give you an idea of the applicant’s job stability and professionalism.
- Character references – While this may not hold as much weight as the others, this is still a good way to have a measure of an applicant’s positive qualities.
These references give you an honest picture of how the applicant behaves in professional and rental environments.
Pro tips on how to screen tenants
Renting out your property requires a lot of trust on your part. Finding a trustworthy tenant who will take care of your property is paramount and learning to spot potential red flags is very important. Some things you could look out for are:
- Inconsistent or incomplete rental history – Gaps in an applicant’s rental history or a lack of information may indicate past issues with previous landlords, such as missed payments or evictions.
- Unwillingness to provide information – If an applicant hesitates to provide details or appears secretive about their background, it may suggest they have something to hide.
- Poor references – Negative or inconsistent references from previous landlords or employers could be a red flag indicating that the applicant is unreliable or difficult to work with.
- Unemployment or low income – Tenants with unstable or insufficient income may struggle to pay rent on time, increasing the risk of missed payments.
Non-Discriminatory Practices
It’s important to remember that under the Equal Opportunity Act, landlords must not discriminate against applicants based on:
- Gender
- Age
- Race
- Religion
- Marital status
- Sexuality
- Whether they have children
- Mental illness or disability
- Pregnancy
Discriminating against tenants based on these protected attributes is not only unethical, but it’s also illegal. All applicants should be treated equally, with their qualifications as a tenant assessed based on their financial stability, rental history, and personal references, rather than personal characteristics.
Final Decision
Once all the checks are complete and the references have been verified, it’s time to decide. Evaluate the applicants based on the facts, keeping in mind that you are seeking a tenant who will respect the property, pay rent on time, and cause minimal disruption to neighbours.
If any issues arise during the screening process, document everything for transparency and future reference.
The rental application process in Perth requires careful consideration and a thorough approach to tenant screening. By asking the right questions, conducting comprehensive background checks, and following the guidelines laid out by the Equal Opportunity Act, landlords can select tenants who are most likely to contribute to a positive rental experience. Ultimately, knowing how to screen tenants helps ensure the stability and success of your rental property.
Brendan Leahy
I am the licensee of We Love Rentals and provide support to the team whenever needed. I began my real estate career over two decades years ago. While I loved seeing people achieve their dream of a new home for their family, I kept thinking that there had to be a better way of doing real estate – one with respect for the long term benefit of the client and one that focuses on customer satisfaction.
