Selecting the perfect tenants, checklist.

Hi,

I've got a 3 bedroom / extra study or bedroom house with a big front and back yard, so it's idea for a family.

What questions or infomation should I be gathering from the potential tenants? So what should be on my checklist for the perfect tenants.

I self manage both my properties.
 
Perfect tenant?

Female, between 20 & 40. Great legs. Great looks and personality. Likes to have dinner and drinks with the landlord. That'll do.

Oh.... i suppose working would be ok.
 
There is no such thing as a perfect tenant.
They are like stocks. Their past performance is not indictitive of future value.

As soon as things downturn, you are at the bottom of their concerns.
 
You should be able to download a standard application form from fair trading NSW. This coveres the questions you can ask the tenant when they apply for the property. Perhaps the question you should ask is what questions to ask their references?

Always ask their current landlord / agent how their routines were, how were they to deal with, how did they pay their rent? Was it regular payments which were easy to follow or did they pay in fits and starts never quite sure of where they were up to? Did they have any pets that they were aware of (even if it is on the appliation, sometimes they put down 1 dog when they have 2). What is their reason for leaving the house? Have they been sent a notice to vacate if so why? Would the landlord have put off sending this notice if the tenants were better??

With their employment always call the last few references provided. Find out why they left their last job (were they fired or did they choose to move on), how long have they been at the new job, are they reliable, punctual and well presented? Is their workspace kept clean? Has their boss met the rest of the family? If so, would they be willing to rent an investment property they owned to their employee? How much are they currently earning. Is this a base wage plus bonus or bonus included?

As everyone else has said, you will never find a perfect tenant as the perfect tenant is different for every landlord but you can certainly find some very good ones.
 
The only issue with this is that you would be using another agencies application form which could get you in trouble. Agencies generate their applications based on the application form issued by fair trading (in NSW) or consumer affairs (VIC).
 
I am very certain that the office of fair trading in VIC had an application form for self managing landlords.

http://www.consumer.vic.gov.au/CA256902000FE154/Lookup/CAV_Forms_Residential_Tenancy/$file/residential_tenancy_application_1.pdf

Is there one for your state?
 
Don't get carried away with a search for an ideal "perfect tenant".

You will only ever be able to choose among those who apply for your property, and often compromises are necessary - i.e., the one with the best references and payment history may bave a dog.
Marg
 
The only issue with this is that you would be using another agencies application form which could get you in trouble. Agencies generate their applications based on the application form issued by fair trading (in NSW) or consumer affairs (VIC).

NSWInvestor wanted a checklist and there is nothing stopping them from using several sources to attain their own.
 
No their isn't, but my point was that the questions asked on another agencies application form will be the same as the questions listed on the application forms supplied to self managing landlords as agencies really only change the letter head :).
 
Yep there is no such thing as a perfect tenant.. no matter how many checks you do their situation can change in a flash. Landlord Protection insurance is the only thing that can save you :) I have very good tenants but that is because I choose in not only what information they provide me and the normal checks us real estates do but also their personalities are very important to me.. you can tell heaps from talking to a person .. the way they speak to the way they dress ..
good luck ;)
 
Nothing speaks louder for a Tenant than when they hand you over 6 months worth of their cash as a non-interest bearing deposit.

Their cash as leverage against themselves. Bewdiful....

Now it can't be guaranteed they'll stay on the straight and narrow, but I haven't had one yet that dosn't play nicely by the agreed rules when you hold, not some poxy Govt dept but you hold, their cash.

Paying their rent yearly in advance (without grovelling for a massive discount) goes a long way as well....
 
It is excellent to get large amounts up front but my concern with those is always.....in 6 months time are they going to have the rent again........???
 
It is excellent to get large amounts up front but my concern with those is always.....in 6 months time are they going to have the rent again........???

Que ??

You get six months upfront as a Bond, and another months actual rent in advance.

Then you get rent every month in advance....and if you don't you've 6 months to boot 'em out.

You've also got clauses in there such that they have to foot your lawyers bill, so the more they argue with you, the more they have to pay.

It works quite well in my sandpit. Highly unlawful of course, with many regulations preventing the Landlord from doing any of that kinda stuff in the housing sandpit. ;)
 
I've created a application form and given it out to the potential tenants to help me find the right tenant with all the necessary fields.

I am surprised by the level of interest, this may be because I have set the rental price too low and it is a good property.
 
I had a highly suspicious offer, advertised for $400 and offered $500 straight off the bat without even seeing the property. I won't go into his personal situation as it private but he said he was really desperate and no one was willing to give him ago.

Another issue that I have is it's a four bed room house and he'll be living it in by himself the majority of the time.

I told him, I'll go through the normal selection process. The same as every one else.
 
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