Tenant Screening - TICA / NTD

[buzzlightyear]

I realise tenant screening is still being used intermittingly amongst PM's, so the charge of incomplete databases, which undermines the value of using it, is legitimate, especially when there are more than one (1). But they will only get to a critical mass of usage, acceptance & value within the industry, if people are using it. So the chicken and egg quandry.

So, questions;
* Do owners instruct or are instructed by their PM and use TICA or NTD or equivalent and are prepared to pay for it?
* Do PM's use it and absorb the cost in their overheads as a risk mitigation tool?
* Is there a preferred industry database? ie is one more accurate or more supported or do they share information
* Do people see prospective tenant & their applications being asked to provide an updated TICA or NTD listing, so passing the cost onto the tenant and away from either the LL or REA/PM?

 

[Lil Skater]

Tend to use NTD more here than TICA.

When I open my doors sometime next year I'll be absorbing the costs for NTD checks - they're not that expensive and I like things to be simple for myself and owners.

Even though NTD is not very reliable as it doesn't have to be used, and laws in Victoria have changed which means you cannot lodge a tenant unless a claim made against them is more than the bond and you also must inform them prior to, I'd rather use it as a "just in case" as on the odd occasion I have found someone lodged - or even just a previous address that they didn't disclose an have contacted that agent and uncovered that they were bad tenants.

 

[buzzlightyear]

LS, in the circumstances where tenants can be reported on the tenancy database, do you have to send official notification to them ie is email acceptable or does it have to be in writing and registered post?

 

[Lil Skater]

I'd say email is sufficient, but then again if it is taken to VCAT it is the member's call as it doesn't actually state what is and what is not sufficient.

If a person can be listed, which is incredibly hard now, I'd do an email and a letter, it doesn't say it must be registered but it must be in writing.

 

[mattysavager]

Our office uses TICA on every applicant, and we absorb the cost. NTD isn't used much in QLD as far as I'm aware.

We do find tenants on TICA, probably once a month or so. Usually listed by other agents, but sometimes listed by insurance companies etc.

It is more difficult to list them now, as tenants can trash the property, be abusive, steal keys, break in and soil the carpet - and as long as the bond pays the bill - they're off the hook.

We do always threaten tenants with TICA before we put them on there, but when we do we email & send a letter if they have provided their forwarding address to our office. In QLD - the tenant has to apply to QCAT to be removed from the database, after paying their outstanding debt. We do find that some people will come back to us some years later and pay back their debt.

 

[Dazz]

Hi Buzz,

Went looking for the latest RTA in WA, as it has severely tightened up on this Tenant database malarkey, since it wasn't mentioned in the 1987 version.

I read previously that it is now extremely difficult to get Tenant's listed on any database, and the information must be wiped off after a certain amount of time.

The Privacy Act pretty much shuts everything down.

Lawyers working for free to help Tenants get away with everything possible have put together this little number to try and thwart at every turn Landlord's being paid what they are owed. It even helpfully lists all of the things Tenants can claim compensation for if they feel hard done by.

Fair crack of the sauce bottle - these Tenancy Advocates are something else altogether.

http://www.taswa.org/infosheets/pdf/1.11_tenant-databases.pdf

....you're flogging a dead horse mate.

 

[sarahirvine001]

I realise tenant screening is still being used intermittingly amongst PM's, so the charge of incomplete databases, which undermines the value of using it, is legitimate, especially when there are more than one (1). But they will only get to a critical mass of usage, acceptance & value within the industry, if people are using it. So the chicken and egg quandry.

So, questions;
* Do owners instruct or are instructed by their PM and use TICA or NTD or equivalent and are prepared to pay for it?
* Do PM's use it and absorb the cost in their overheads as a risk mitigation tool?
* Is there a preferred industry database? ie is one more accurate or more supported or do they share information
* Do people see prospective tenant & their applications being asked to provide an updated TICA or NTD listing, so passing the cost onto the tenant and away from either the LL or REA/PM?

Most agents in QLD use TICA and this is, I believe an annual fee subscription paid by the Real Estate. This is something that SHOULD be covered for in the management fee. NTD is more used in NSW and VIC I believe, and I do not think they share information - they are completely independent. I used to work in an office that managed properties in all states and they use TICA and NTD. However, it costs approx $15 per NTD search (it is not an annual fee) so every application per person is $15 at the cost of the Owner.

A tenant may be listed on TICA but not NTD or NTD and not TICA, but I do not believe it is worth it doing checks on both as this could become very expensive to the landlord if 10 applications were to be processed.

 

[Curlytops]

LS, in the circumstances where tenants can be reported on the tenancy database, do you have to send official notification to them ie is email acceptable or does it have to be in writing and registered post?

With TICA you can put tenant on report on there database with out notification straight away as long as it has been to VCAT as it is public record then. I had to evict tenants and argued the point (which they agreed with) its unfair to have to wait 14 days for a reply of the tenants providing you have a forwarding address before listing them on the database they could have got another property by then and be doing the same to the new landlords.

 

[--(< PJ >)--]

Thanks

Just sending a quick message of thanks for the info. I've read through your posts just now.

After seven years, I'm considering self management. The one thing I'm uncomfortable with is the screening. Not being an agent, I know I can't get direct access to the databases - but this is good info anyway!

I've had a dream run, but appreciate that it's soooo hard to avoid problem tenants. I'm looking for a third-party check service (agent or other). If anyone knows of one that does QLD then please let me know.

In the mean time, my focus is on applicant criminal history check consent etc. QCAT is seldom used in in regional QLD areas (people hate paperwork and just cut their losses and fix up the place etc) so often criminal history is one of the best indicators of high risk here. Still learning about how to go about this (asking Qld Police) and have contacted the RTA etc too.

With three units and two houses now, I'm having fun! I'm also helping with a rental unit owned by my bloke and we're doing up a house for him that's a PPOR but will end up as another rental in the future I bet. It's all entertaining!

Warm wishes to all and hope all you somersoft folks have gone ok in the wild weather,
PJ

 

[Curlytops]

As far as Im aware you cannot do criminal checks as that is discrimination?. You also have to be a registered real estate agent to use NTD? but with TICA private landlords can use as well.

 

[esh]

We use TICA at our Agency and we would never short list a tenant to our Landlord before putting them through TICA plus it should be a free service to landlords.

I guess if your gonna manage yourself- ask the right questions, do reference checks (even though they may possibly give a friends number because you can't really check if they do own a certain property etc), fb linked in profiles and always go with ur gut instincts! If ur feeling funny about a tenant and things are not adding up for u.. You will get another applicant. At the end of the day u want quality tenants!

 

[Lil Skater]

What about seeing if you can find an agent to do a lease only?

They do all the inspections, get applications and process them plus all the paperwork.

A lot of agencies don't, but a few will. Although expect to pay more than 1 weeks rent for the service.

 

[Goofy]

We use NTD and absolutely pass on the cost to the owner as it is an expense we incur. I find that is is useful picking up veda lodgement and court judgement debts as well.

 

[lura]

TICA and QCAT

TICA have a virtual manager function where you can list any tenant you want. It will not show them publicly but it will alert your agency that the particular tenant is being searched for by another agent.

It is very frustrating because some adjudicators do not like the tenants to be listed on TICA until after the QCAT hearing and it is then confirmed that the tenant does owe over and above the bond amount.

The virtual manager is great because we receive the alert to the office that did the search and we contact them asap to brief them. And it gives us a chance to find out where our tenant is moving to - they wouldn't be on the virtual manager unless we have reason to put them on their.

TICA is a cost covered by our office not on charged to our clients. I guess everyone does things differently.

 

[esh]

What about seeing if you can find an agent to do a lease only?

They do all the inspections, get applications and process them plus all the paperwork.

A lot of agencies don't, but a few will. Although expect to pay more than 1 weeks rent for the service.

Yeah. Ask around local agencies. You may never know. I know an agent in western Sydney who didn't really focus on property management but he stated he wouldn't mind doing that part if the "management".

Doesn't hurt to ask property managers- may get quite a bit of no's though

 

[chindonly]

You can (in Qld) get agents to source you a tenant and do the TICA check.

Then you can self manage.

Normal source fees apply.

 

[BaileyPropSA]

Hi Guys

as an agency we absorb the cost of TICA for our landlords paying full management fees. Its insurance for us as much as it is for the landlord.
We woould be more than happy to offer TICA checks to Somersoft users for $15 per check. If we can help anyone out please give us a call on 0412040161 or email the details to [email protected]

cheers