The tenant selection process is probably the second most critical element in having a successful property investment, the first critical element is selecting an experienced agency like “The Property People” . We have the requisite legal and practical knowledge and experience in managing a tenancy.
We will look for a tenant that can afford to meet the rental commitments each week, together with a track record of maintaining their rental property with care.
There is no perfect strategy to ensure a perfect tenant and a hassle free tenancy, so after many years of experience in dealing with people we follow some simple principles:
1) Ensure that all parties complete a tenancy application form together with a 100 point identification.
2) Find out where they have been renting, review the tenant ledger to establish their payment history. This will weed out chronic late payers and tenants with serious arrears problems.
3) Ask the agent about how the property has been kept during the tenancy. Experience tells us that most property managers are reluctant to make negative statements about current tenants, so if the tenants are renting a house on the peninsula, we will drive by the property to view it from the outside
4) Verify income, so if the tenants are working establish how much of the income is permanent income, how much is overtime etc. If the tenant is receiving a Centrelink payment, we will obtain a letter from Centrelink setting out the fortnightly benefits. We will also encourage tenants onto the Centrepay system, whereby rent is paid by Centrelink directly to our agency.
5) Check the tenant references. You might be thinking that no-one every gives a bad reference, but you would be surprised to know that sometimes they do
6) Check for a listing on a tenant default database. If a tenant is listed on TICA it is a policy of this office not to rent to that tenant. Provisions in The Property Stock and Business Agent Regulations provide for strict controls for listing tenants on default databases, so if they are listed, there must have been a problem.
7) Pets- Australia has one of the highest rates of pet ownership in the world, so invariably as a Landlord you may get applications from people with pets. In which case we will ask for full details so that you can decide if you will accept a pet at your property. It is a standard term of the Residential Tenancy Agreement that pets are not allowed at the property, so we will seek your instructions in this regard. Items that we ask the tenant for may include a copy of the pet registration through the local council, if the animal has been de-sexed, if the animal has been immunised, if it is a dog, whether it has attended any training or obedience classes, and finally a “pet reference” from the last agent or a neighbour of the tenant stating that there were not issues with barking or digging.