Background check your tenant

[Paul@PFI]

How many PMs really do a background good check on the tenant ??

http://www.tenancycheck.com.au/

A client of mine with many IPs tells me she insists that a check is done for each occupier aged over 18. If the PM wont do it she does it herself. No exceptions! She reckons the minor $38.50 per person cost has saved her countless losses. All she requires is some minor identification and address details of the proposed tenant. She explained that if the PM doesn't do it then her lease is always subject to a report...She has had a few refuse but she suspects it was because they had reason to hide.

She places no faith in some "networks" some REA belong to and thinks its a bit weak....I would be interested in other people's views on this. My REA has always done good employer and background checking and so far so good. I'm sure there are good and bad and its easy to put the lease in another name (ie new partner) to hide a issue.

 

[T.G]

Plenty of agents don't, no matter what they tell you as a landlord.
They have the tennants fill in the paperwork and don't ever do checks as they are too tight. D&D real estate at Parramatta are one example that spring to mind.

 

[INVSTOR]

As a private landlord for some of our properties I've only had two private landlords contact me for reference checks. No agency has ever called me to do checks on previous tenants. Sometimes the tenant contacts me to say they've applied for a property through an agency so expect a call...but they never do.

 

[Peter_Tersteeg]

Agencies don't call because there's no value in a reference from an existing private landlord. If they're a good tenant, you'll say they're a good tenant to be nice or they're a bad tenant in the hopes of keeping them. If they're a bad tenant you'll say they're a good tenant to get rid of them. Either way, a PM can't rely on what a private landlord says.

 

[INVSTOR]

You can't always trust PM's references also. I had a tenant rent from me for about two years. About 4 years later she contacted me to use me as a reference. I just happened to be purchasing in same area at same time. Her previous PM gave her a bad reference. If I hadn't have rented to her prior I wouldn't have rented to her! Luckily for me it was an interstate purchase, the vendor was a grot, and the tenant couldn' t be more tolerant of the circumstances.
One of the most important reference checks are to employers.