How to Screen Potential Renters Fairly

Creating a dialogue to change in the rental market is one of the key goals for property managers in Queensland as tenants and property management companies are consistently at ends with each other due to the red tape surrounding screening potential renters. Tenants feel hard done by with some of the procedures in place, claiming they are an infringement on their privacy, while rental managers believe they should be able to have greater access to information on potential tenants as the cost of allowing bad renters into a property can be catastrophic.

More often than not, bad tenants are the cause of most landlord problems. Damaged equipment, careless use of electricity, hot water, air-conditioning, failure to maintain a clean and tidy area, causing issues for the neighbours, failing to provide payments on time or just failing to cooperate. Thankfully, these risks and potential issues caused by unpleasant tenants can be eradicated quite simply though an efficient and thorough screening process. Always remember though, that consistency is key. All potential renters must go through the exact same screening procedures (failing to do so could result in a violation of fair housing laws). The most basic of screening procedures requires tenants to submit a rental application, undergo a criminal history examination and authorise a credit report. This is where the bridge between property management companies and tenants exist. Tenants feel that their previous criminal history should not be included as it allows property managers to judge these people wholly on their past, leaving them in a worse position than other applicants and thus making it harder for them to find suitable accommodation for themselves and their family.

The screening process should ideally take place at the first point of contact with the prospective tenant (the first point of contact is usually over-the-phone or via email, before the physical meeting). It is during this very first moment of contact that some vital screening procedure questions should be asked. By doing so, you can avoid wasting precious time.

This post breaks down the new screening process into its most basic forms through multiple stages and required questions. This was achieved through the recent study circle – dialogue to change hosted by www.rentalguardians.com.au in Stafford. The property managers present at the study circle were extremely happy with the outcome of the event and have implemented the screening process for some of their properties in the North Brisbane including Wavell Heights, Nundah, Chermside, Aspley, and Clayfield with positive results.

Below is an example of screening stages and how to select an appropriate candidate:

Stage 1: Moment of First Contact – Prospective tenant makes contact to inquire about the property and lease agreement. During this moment of ‘first contact’ be sure to present some pre-screening questions (What, Why, How, Who, When) to the client to suss out whether or not he/she is serious about renting and whether or not an onsite showing may be a waste of time.

Stage 2: Meet and Greet/ Show and Tell – After having passed stage 1, you will have scheduled a time to meet the prospective tenant(s) in person to examine the property.

Stage 3: Potential Tenant’s Application –  If both tenant and landlord are still interested after the initial meeting, he or she will be required to fill out a rental application including references from previous landlords and employers. Be sure to include a criminal background check and run a credit report.

Stage 4: Process of Approval –  If the tenant appears to be a good candidate you may accept them and politely decline other applicants. Keep in mind that the screening is incomplete until the lease is signed.

Stage 5: Signing the Lease – When both parties are ready to sign the lease, be sure to cover all aspects of the lease with the prospective tenant and ensure that all conditions are completely understood and mutually agreed upon. It’s not too late to back out of the lease if things take a turn for the worst at this point.

Remember to keep track of all the candidates and record their responses, answers and personal situations. You can never be too cautious so be sure to follow up on any queries or suspicious. You know what they say, better safe than sorry! Questions to post to potential candidates during Stage one) include: their reason for moving, when they plan on moving in and how long for, their financial and income situation (can they afford this lifestyle?), how many other people/animals will be living with them and if they will consent to a credit review and (criminal) background check. It is also important to ask for them to provide reviews from previous landlords and their employer. Declining any of the above requests shows that the applicant may be hiding something and therefore you must be extremely wary about considering them. If they provide this information but have a few negative outcomes, don’t write them off straight away. Create a dialogue and judge each situation on a case by case basis to remain fair and open to all applicants. To find out more about the study circle results please call 1300 443 581 or write to 23 Victor Street, Banyo QLD 4014 to request a copy.

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