What do you look for in a tenant?

[jmillar]

One of my properties has just become vacant and my managing agent has received a few applications and is expecting some more next week. I've never really done this before, so any advice would be appreciated. The property is a 2bdr unit in Penrith.

What do you look for in an applicant?

Most of my applicants are on centrelink, are single mothers, have to pay child support, have no prior rental history etc etc. I know that I'm not going to get the CEO of CocaCola applying for my unit, but on which basis should I be choosing the right tenant?

Thanks

 

[pinkboy]

Stable income, preferably over a term greater than the proposed lease term, a rental history verified by an agency (not private), and full disclosure of who will be residing in your property.

That's just a basic staple list. There certainly will be other points, but these should be your main focus to filter the good from the not so good.

pinkboy

 

[kathryn d]

Depending on our property, we require 'higher risk tenants' to have a co-signer. Someone with a job.

We also start with a short 3 month lease.
Usually they show their colors in 6 weeks.

 

[HD_ACE]

Orginise to have centrelink pay you their rent direct.

Cheers

 

[Ausprop]

I don't envy you sorting that lot out

 

[S.T]

Savings in the bank is important too, at least enough to cover first months rent and bond. I always ask my PM's about their presentation too.

 

[Ace in the Hole]

Adequate dual income or multiple income, preferably from a stable job and good references from past rental history.
Rent rate must only be a fraction of earned income.

You'll be taking a big gamble by accepting any prospective tenants mentioned so far.

 

[Coconutwheels]

One of my properties has just become vacant and my managing agent has received a few applications and is expecting some more next week. I've never really done this before, so any advice would be appreciated. The property is a 2bdr unit in Penrith.

What do you look for in an applicant?

Most of my applicants are on centrelink, are single mothers, have to pay child support, have no prior rental history etc etc. I know that I'm not going to get the CEO of CocaCola applying for my unit, but on which basis should I be choosing the right tenant?

Thanks

A reasonable Rental reference/history I don't want to be the "trial" Land Lord for someone with no rental history.

Proof they can afford to pay it, if it comes via Center link and they have a good reference even better, no chance of getting the sack from that job

 

[monalisa]

Where they are unemployed we make sure we get a guarantor on the lease.

For our props, we have been guided by our PM, I have new migrants sign up - who have had no rental history, or employment. But each time I have had a guarantor - and have inquired about guarantor's assets, savings and employment. So far so good.

 

[ramblin]

maybe you can ask how long they have stayed at the past 3 addresses. if they've been at 1 address for 10 years as opposed to 10 addresses in 1 year, that may indicate reliability or lack of

 

[brahms]

Make sure your manager interviews the 'short list' personally, they usually do. Everyone can look good on paper, sometimes you have to run with a gut feeling.

Sometimes it doesn't work out. Make sure a tenants sob story doesn't turn into your sob story if you know what I mean.

 

[Xjas]

Facebook.

You can find out a lot about a person by what they post on their facebook account.

We had a young couple apply and claim to be non smokers, after a bit of searching found the girls facebook page, profile pic and several others she has a smoke in her mouth, hmmm, next applicant please.

 

[JacM]

Among my best tenants are those on benefits. I get paid directly by Centrelink, my rent is paid on time every time, and the tenant stays for a long time.

 

[Tim86]

I look for someone on benefits with no motivation to improve their circumstances so that they remain tenants for a long time. The way I figure it, I pay taxes, those taxes pay the dole for my tenants, that dole pays me rent, I invest that money back into our economy Everybody is a winner!

 

[greentomato]

Facebook.

You can find out a lot about a person by what they post on their facebook account.

We had a young couple apply and claim to be non smokers, after a bit of searching found the girls facebook page, profile pic and several others she has a smoke in her mouth, hmmm, next applicant please.

And this is why I don't have social media accounts.

Not that I have anything to hide from a prospective landlord but lowbrow snooping? Really?

If you snoop into their Facebook pages do you also peep their windows?

 

[fokas]

Facebook.

You can find out a lot about a person by what they post on their facebook account.

We had a young couple apply and claim to be non smokers, after a bit of searching found the girls facebook page, profile pic and several others she has a smoke in her mouth, hmmm, next applicant please.

Geez-louise... Someone has a few casual cigarettes when out drinking with friends, or perhaps have photos up from years ago before they quit and suddenly they're liars who smoke? Talk about paranoid. I would feel very weird being 'checked out' like that on social media and being judged so poorly... although I'm not naive enough to think it doesn't happen so have my security settings at a level I'm comfortable with.

 

[Scott No Mates]

Using FB and other social media is a well known method of an agent checking fact against fiction. Often, well presented candidates have outrageous parties/house trashings etc on their profiles.

Suprise, suprise - even your employer looks at your FB pages, especially if you have chucked a wellie.

 

[The Fence]

Too right Scotty ! Nothing wrong with cross checking the truth.

My best and longest tenants are on pensions and never ever late paying and keep the places neat and clean at all times, even when they think Im not looking !

Im always wary of the ones who come across as being our best choice, especially when they say so.

The ultimate decision always is made with gut feel after the preliminary qualifications which is mainly, ability to pay.

 

[PrimeProperty]

The best indication of a tenants likely future performance is their past performance, so if they do have a rental history then this is the best place to start.

The one positive of the tenants working for the government is that they do have a stable income- I would recommend getting the rent paid direct by centre link.

If there is no rental history then you could do additional credit checks through Dun and Bradstreet to see if they have ever defaulted on loans etc.

Also, if they are just leaving home for the first time, do a drive by and see how the house is presented as if mum and dad do not take pride in their property it is likely that their kids will not as well.

 

[Xjas]

And this is why I don't have social media accounts.

Not that I have anything to hide from a prospective landlord but lowbrow snooping? Really?

If you snoop into their Facebook pages do you also peep their windows?

I dont really see it as snooping, people choose to post things on the internet with the knowledge the whole world has the ability to see it, a bit different to peeping through someones windows I think.

Geez-louise... Someone has a few casual cigarettes when out drinking with friends, or perhaps have photos up from years ago before they quit and suddenly they're liars who smoke? Talk about paranoid. I would feel very weird being 'checked out' like that on social media and being judged so poorly... although I'm not naive enough to think it doesn't happen so have my security settings at a level I'm comfortable with.

It was a little more complicated than that but there were several photos of them smoking including the profile pic which looked pretty recent. Call it paranoia if you like but that seems like a red flag to me when they appear to be dishonest on their application.