Did you know that almost one in three Australian properties are rentals? This is according to ABS figures released in 2021, with data revealing that our national real estate market continues to include a large share of renters.
As a landlord or investor, this means that you’re likely to receive a number of potential applicants when the property is put up for lease. Picking the right candidates is the best way to achieve a smooth and stress-free tenancy. Rushing the process and choosing the wrong candidate–well, that’s a completely different story.
So, how exactly can you find reliable tenants? Although some owners choose to go at it alone, many rely on the expertise and assistance of their property manager. As we’ll go on to cover below, property managers conduct a careful tenant screening process to find the best possible candidates.
Let’s explore how property managers use screening to find reliable tenants.
The Tenant Screening Process
Tenant screening involves several steps, each designed to verify an applicant’s ability to meet their rental obligations. Property managers use a combination of application reviews, background checks, rental history verification, and reference calls to make informed recommendations to landlords.
As an investor and property owner, it’s only natural to want the best possible candidates as your tenants. In this case, it’s helpful to think of the screening process much like a job opening. Candidates apply and then the person in charge of hiring (either external or internal), assesses these applications, then presents the best and brightest to the organisation.
In most cases, the screening process can be broken down into two key stages. Let’s explore these now.
Phase 1: Property Viewings
Once the owner decides to put up their property for lease, this sets off a natural chain of events. The first stage involves creating marketing material and posting a listing on a real estate platform (e.g. Domain or REA).
At this stage, property managers can also create a first-class, tailored marketing strategy designed to attract high-quality tenants. The listing is then updated with property viewings that are open to the public or the contact details required to book a private viewing.
On the day of the viewing/inspection, the property manager will be on hand to unlock the front door, greet the guests, and answer any questions that prospective tenants may have. Hopefully, there will be many interested parties, and if so, the property manager will provide a link for each party to submit their application.
Planning to lease on the Sunshine Coast? We Do Property is a locally based team with dedicated property managers in Buderim, Mooloolaba, Palmwoods, and everywhere in between. Call us and let’s chat about your next property adventure!
Phase 2: Reviewing Rental Applications
Although the previous stage sets the foundation, this is when the majority share of the screening process takes place.
1. Reviewing the Rental Application
The first step involves the collection of detailed information through a rental application. These days, an application is quite extensive, with up to 10 or more categories that need to be completed in order for the application to be successfully submitted. It’s also worth noting that the vast majority involve the use of an online platform.
Property management platforms will often request essential details, including:
- Full name and contact information
- Employment and income details
- Rental history and previous addresses
- Personal and professional references
- Information on pets (if applicable)
A well-filled application gives the property manager a well-rounded snapshot of a tenant’s financial stability, rental background, and overall suitability for the property.
2. Checking Rental History and References
Past rental behaviour is one of the strongest indicators of how a tenant will perform in the future. In this case, property managers contact previous landlords to confirm:
- Whether the applicant paid rent on time
- If the tenant maintained the property well
- History of any disputes, lease violations, or evictions
- How the tenant interacted with neighbours
This step helps to uncover red flags that may not be immediately obvious in an application.
3. Verifying Employment and Income
Without a stable income, the tenant/tenants will be unable to meet their rental payment obligations.
Property managers vet applicants by verifying employment details, payslips, and bank statements as concrete evidence to demonstrate financial stability. Self-employed applicants may need to provide tax returns or financial statements to demonstrate consistent income.
4. Comparing Applications and Selecting the Best Fit
Once all the screening steps are complete, property managers compile the findings and present the most suitable candidates to the landlord. While it’s the property manager’s role to offer recommendations, the final decision ultimately rests with the property owner.
After the owner finalises their decision, the property manager then passes on the good news to the successful applicant, as well as sends through any relevant documentation (including the lease agreement) for them to sign.
Common Tenant Screening Challenges
While screening helps landlords avoid unreliable tenants, the process isn’t without its own challenges. Here are some common issues that property managers have to navigate:
Incomplete or Misleading Applications
Some tenants may provide false information, such as inflated income figures or fake references. Property managers cross-check details and contact referees directly to verify authenticity.
High Competition for Rentals
In high-demand rental markets, multiple applicants may be vying for the same property. Property managers assess applications fairly, selecting the most reliable tenant based on objective criteria rather than a ‘first come, first served’ approach.
Balancing Fairness with Risk Mitigation
Property managers must comply with tenancy laws while selecting the best applicant. They must avoid discrimination based on age, gender, nationality, or other protected characteristics while still assessing financial stability and suitability.
The Value of Professional Tenant Screening
A thorough screening process is, without a doubt, one of the most effective ways to secure reliable tenants. While some landlords attempt to manage tenant selection themselves, professional property managers bring expertise, systems, and experience that streamline the process and reduce risks.
By carefully assessing rental applications, verifying financial stability, and checking references, property managers help landlords secure tenants who will treat their property with care, pay rent on time, and contribute to a positive tenancy experience.
In a competitive rental market, this diligence benefits both landlords and tenants, merging to create a smooth rental process for all parties involved. If you have any questions about this process or simply need to speak with rental agents on the Sunshine Coast, don’t hesitate to get in touch! We’d love to hear from you.
FAQs
Q: Does the property manager present hand-picked candidates to the landlord?
A: Yes. Property managers assess all applications, then shortlist the most suitable candidates based on financial stability, rental history, and references. From here, they present their findings to the landlord, who makes the final decision.
Q: Will a property manager contact the referees listed on a rental application?
A: Absolutely, although this can be direct or automatically via a form that is sent to the referees listed. Property managers may also contact previous landlords and employers to confirm the accuracy of an applicant’s rental history, financial reliability, and character.
Q: As a tenant, how can I make my rental application stand out from the crowd?
A: A strong application includes complete and accurate information, proof of steady income, positive rental references, and a well-written cover letter explaining why you would be a great tenant. Gathering all the required documents upfront can also save time and improve your chances.
Put Your Best Foot Forward with We Do Property: Experienced Property Managers on the Sunshine Coast
At We Do Property, we’ve always believed that a careful screening process sets the foundation for a smooth and stress-free tenancy. From arranging property inspections to vetting potential tenants, our dedicated staff can help with all aspects of your investment journey.
We aim to help maximise your return on investment with minimal ongoing issues throughout the lease agreement. Get in touch with an experienced property manager now.
