1.    What is Tenant Screening, and Why is it Important?

 

Tenant screening, as the name might suggest, is the process where a landlord or a property manager evaluates and interviews potential tenants before renting out a property. Tenant screening involves taking a number of important steps to ensure you find a tenant you can trust. These include checking the following:

• Background

• References

• Credit history

• Employment status

• Income

• Criminal record

• Rental history

• And more

The main purpose of tenant screening is to identify any red flags indicating a potential tenant may be unreliable. For example, a history of missed payments, eviction notices, or criminal activity might suggest a tenant is at risk of causing issues in the future. Of course, this is by no means always the case, but by conducting a thorough screening and rental check, you can make an informed decision about who to rent to and avoid tenants who may cause issues or be unable to pay rent on time.

So, what are the key elements to consider when conducting a screening? And what can you do to ensure you are not discriminating against potential tenants? Read on for our top tips and strategies when screening tenants for your rental property.

 

2.    What are Some of the Legal Requirements for Tenant Screening?

 

In Australia, legislation is in place to protect the rights of landlords and tenants. However, each state and territory has its own unique laws in place. And so, the legal requirements for screening tenants in ACT may differ slightly from that of WA. However, some general conditions to be aware of include:

 

• Anti-discrimination laws: Landlords and property managers cannot discriminate against potential tenants based on their race, gender, age, disability, religion, or other protected characteristics. All of your applicants must be treated equally and fairly.

• Rental history: You may request information about a potential tenant’s rental history, including rental payments and past tenancies. However, you must obtain the tenant’s consent first.

• Privacy laws: You are required to comply with privacy laws when collecting and using personal information about your potential tenants. Also, the information you collect must only be necessary for the screening. Once you’ve obtained the data, you must store it securely.

• Reference checks – As a landlord, you may request references from your prospective tenant’s previous landlords, employers, or other referees. Again, however, you must first obtain your tenant’s consent.

• Background checks: You may conduct background checks, such as criminal checks. However, you must obtain permission and ensure your queries are relevant to the tenancy.

• Financial checks: You have the right to request financial information such as income, credit history and employment status, but you must first obtain consent.

 

3.    What are some of the key elements to consider when screening potential tenants?

 

As mentioned above, a host of enquiry options are available to landlords, and it is highly advisable to use them as they are vital elements that ensure a thorough screening. However, some key elements to consider include the following:

 

• Inform your tenant that they must complete a rental application that will provide their personal details, rental history, employment information, and references. Make sure to advise tenants that you will be contacting references and carrying out background checks.

• Once you have your prospective tenant’s rental history, contact their previous landlords to ensure they paid rent on time, complied with the terms of their lease, and maintained the property.

• Employment and income verification – This may include contacting their employer or reviewing their pay slips or tax returns.

• Request references from the tenant’s previous landlords, employers, or other referees

• Check the tenant’s credit history to see if they have any financial issues or outstanding debts.

• Consider conducting a criminal background check to verify if the tenant has a criminal record.

• Make sure that they understand the terms and conditions of the lease.

 

4.    What are Some Effective Screening Techniques for avoiding problematic tenants?

 

To be extra thorough when carrying out a tenant screening, consider doing a ‘pre-screening’ with your tenant before the rental application process begins. Asking simple questions about pets, whether they like to party regularly, or simply mentioning that you will carry out background checks can help weed out tenants unsuited to your property. It may also help you find your dream tenant and speed up the process.

Consider looking at their social media to get an idea of their character. This may help give you an idea of how they would treat your property.

In most cases, you’ll want to carry out inspections where you’ll be showing potential tenants around your property. This is an excellent opportunity to get a feel for each tenant, where you can interview in an informal, relaxed environment. Chatting and asking questions about them, such as how they enjoy their job and if they move around a lot, can give you some idea of who they are.

Also, seeing them physically interact with the property can give you some clues about how they will treat your home once they move in. If you have hired a property manager to carry out the screening, joining them for the inspections might be advisable.

 

5.    What are Some Common Red Flags to Look Out for During the Tenant Screening Process?

 

When carrying out rental checks and screenings, it’s vital not to discriminate and remember you can’t always judge a book by its cover. Or its credit score. However, there are some common ‘red flags’ you can keep in mind while screening. These include:

 

• Eviction history – If a tenant shows a history of being evicted, it may be a sign that they have had previous issues paying rent and respecting lease terms.

• Poor credit score – A low credit score may indicate a tenant’s history of not paying bills on time, which could mean a risky tenant.

• Refusal to provide information – If a tenant is unwilling to provide information during the screening process, such as rental history and personal references etc., you should ask and check why this is. Ultimately, you’re entrusting your property with someone you don’t know, so it’s your right to be given the appropriate information.

• Poor Communication Skills – Having a good communicative relationship between you and your tenant is important. If a prospective tenant has difficulty responding to calls and messages, it might be a warning sign that they would be challenging to work with.

• Criminal Background – Remember, it’s important not to discriminate, and you should only make a decision once you have all the relevant information. However, a criminal history, especially for violent crimes, might indicate that your tenant could pose a danger to neighbours, other tenants, or property.

• Inconsistent Employment: A tenant’s history of frequent job changes or gaps in employment may be a sign that they do not have a reliable income source and could struggle to pay rent.

 

6.    How do Credit and Background Checks Factor into Tenant Screening?

 

As mentioned above, you can run credit and rental background checks on prospective tenants during the screening process. However, hiring a property manager to carry this out is advisable as they are fully qualified and equipped to perform a thorough screening that can save you time and money.

When carrying out background and credit checks, you must always obtain consent from potential tenants and comply with the relevant privacy regulations and laws. Both credit and background checks factor separately into the tenant screening process:

 

Credit Checks

You can request a tenant’s credit report from a credit reporting agency. This report provides information on the tenant’s credit history, including any outstanding debts, late payments, and bankruptcies. A tenant with a poor credit score might be considered a higher risk for defaulting on rent payments or other financial obligations.

Background Checks

Background checks are used to verify a tenant’s identity and check for criminal history. This includes searching for any past convictions or charges and any outstanding warrants. Again, it is vital not to discriminate and ensure you have all the information before making a decision. However, a tenant with a history of criminal activity may pose a risk to neighbours, other tenants, and the property itself.

 

 

7.    What are Some Best Practices for Communicating with Potential Tenants During the Screening Process?

 

You are advised to follow several best practices when communicating with potential tenants during the screening process. It’s important to carry out non-discriminatory screening, set expectations, and be transparent about the screening process. By following best practices, you’re doing your job to ensure a smooth screening process.

 

• Being prompt and professional – Respond to questions and enquiries promptly, and maintain a professional tone in emails, phone calls and in-person meetings.

• Provide clear and detailed information – Be sure to provide detailed information about the property, including rent, amenities, lease terms, and other valid information.

• Say no to discrimination – Treat all applicants the same and do not make any decisions based on factors such as gender, sexual orientation, race or religion.

• Conduct background checks– Once you’ve received all your applications, conduct thorough background checks to ensure the information your potential tenants have provided is factually correct.

• Set expectations– Clearly explain the screening process so your prospective tenants know what is required of them regarding documentation, timeframes, etc.

• Follow up with all applicants– Whether or not you plan to pursue a potential applicant; it’s always best practice to follow up promptly and explain your decision clearly and professionally.

 

8.    How Can Landlords Ensure They are Not Discriminating Against Potential Tenants?

 

Ensuring you carry out a fair and non-discriminatory tenant screening process is vitally important. Each state of Australia has its position on discrimination regarding rental properties. For instance, in the Australian Capital Territory, it is “against the law for someone to discriminate against you because of a characteristic that you have, or that someone thinks you have, in an area of public life such as employment, education, provision of goods and services and accommodation”, (ACT Human Rights Commission).

 

When going through your screening process, taking the following steps can help to ensure you are not discriminating against any prospective tenants:

• Operate in accordance with fair housing laws: Research local, state, and federal fair housing laws that prohibit discrimination against protected classes in housing and make sure your screening process does not violate these laws. For instance, The Residential Tenancies Act 1997 is the law that governs renting in the Australian Capital Territory and provides a “balanced framework” to protect both landlords and tenants (ACT Government).

• Avoid discriminatory language: When writing up rental ads and communications, use inclusive language and do not imply a preference for or against particular groups of people.

• Use objective criteria: Develop objective criteria based on factors such as rental history, credit history, and income to evaluate if a tenant is suited to the property. Avoid subjective factors like ethnicity, gender, religion, sexual orientation, or disability.

• Apply the same criteria to all applicants consistently and ensure inclusivity in your evaluations.

 

9.    What are Some Common Mistakes Landlords Make During Tenant Screening?

 

Tenant screening is vital to ensure you have someone staying on your property who is reliable and you can trust. Unfortunately, it’s not uncommon for tenants to make mistakes during the screening process, leading to issues down the line. Common mistakes include:

• Not carrying out background checks – These are vital for providing tenant histories such as criminal charges, rental history and credit scores. Avoid this mistake by conducting thorough tenant screenings yourself or through your property manager.

• Failing to check references: While it might be tempting to overlook checking tenant references, such as from previous landlords and employers, this can be detrimental as it is a missed opportunity to learn vital information about a tenant’s reliability, payment history or overall behaviour. Always ask for references and follow referees up with questions about the tenant’s ability to pay rent on time and how they took care of the previous property.

• Not carrying out interviews – Meeting a prospective tenant in person, over the phone or via Zoom is important to determine if you are both on the same wavelength. Are they looking for short-term accommodation while you’re seeking a long-term tenant? Talking to the candidate can help you get to know them a little and allow you to ask valuable questions.

• Rushing the process: While you may be eager to fill a vacancy quickly, carrying out a thorough screening will allow you to gain all the information you need to avoid problem tenants.

 

10.     How Can Landlords use Tenant Screening to Improve the Rental Experience?

 

As explained, tenant screening is the process of interviewing and evaluating prospective tenants before renting out your property. Tenant screening involves carrying out various vital steps, such as requesting information on or carrying out the following:

• Rental history

• Background checks

• Contacting references

• Credit history

• Employment status

• Criminal records

• And more

 

A thorough tenant screening should be in no way discriminatory but should help to identify any red flags that could indicate a candidate may be unreliable or unwilling to take care of your property.

Tenant screening helps to ensure that you find a reliable tenant, promotes a safe environment for neighbours and fellow tenants and ensures that you and your tenant want the same things.

Carrying out tenant screening can be a lengthy and time-consuming process. So, it’s highly advisable to hire a property manager to assist with screening, continued property maintenance, and communication with tenants.

If you have any questions about tenant screening or property management, please contact Jonny Warren by filling out this form, calling 0431 797 891 or emailing jonny@dev.jonnywarren.com.au. Alternatively, you can contact us for a rental appraisal, and we’ll be more than happy to get back to you.

As a landlord, it would be unsurprising if you’ve found yourself feeling hesitant when it comes to accepting pets into your rental property. It’s not uncommon for property owners to have the same concerns. Potential for damage, issues around liability, and worries about hygiene, odour and noise, are common. While these are all valid anxieties, it’s important to know that not allowing pets in your rental property may cost you in the long run.

Consider this – most pet owners consider their pets part of the family and wouldn’t contemplate renting without them. Furthermore, a 2022 report by Animal Medicines Australia found that 69% of homes across Australia are now home to one or more pets.

With this in mind, it’s easy to see why accepting pets in your rental may attract more renters, especially those willing to rent more long-term. In this blog post, we’ll explore the advantages of renting to pet owners and offer tips for landlords to ensure the safety of their rental properties.

 

Benefits Of Allowing Pets In Your Rental

 

You May Attract More Tenants 

 

Accepting pets in your rental property can attract a wider pool of potential tenants, as many pet owners struggle to find pet-friendly housing. The above-mentioned report by Animal Medicines Australia found that one of the primary barriers to renters and apartment dwellers acquiring one pet or expanding on their current animal family was constraints put in place by landlords, body corporates and strata laws.

Another report by Animal Medicines Australia entitled Pets and the Pandemic, found that there had been an increase in pet ownership from 61% – 68% from 2019 – 2021, with 70% of all pet owners surveyed saying that owning a pet had improved their lives during Covid-19. With the rise in pet ownership and the strengthening of animal-human bonds, it’s clear that more and more Australians are investing their time and money in pets. By opening your rental property to pets, you can enter a previously untapped market and quickly increase your chances of finding a suitable tenant. In fact, many qualified tenants won’t even consider renting property unless they can do so with a pet. Additionally, many pet owners are willing to pay higher rent to secure rental properties that accommodate their furry friends.

 

Improving Quality of Life

 

The Pets and the Pandemic report also found significant connections between pet ownership and mental health. In fact, in conducted focus groups, it was almost unanimously agreed that participants experienced great emotional and social benefits from owning pets and even advocated for non-pet owners to experience it for themselves.

Pets can provide companionship and security for tenants, especially those who live alone. By accepting pets in your rental property, you can promote a better quality of life for your tenants and increase overall satisfaction with their living arrangements. On top of that, a happy tenant is much more likely to renew their lease and recommend your rental property to others. And so, by allowing the flexibility of pet-owning to renters, you help to ensure a healthy relationship with your tenant and may even convince them to stay longer.

 

Addressing Potential Downsides

 

Of course, there are a number of potential downsides to allowing pets in your rental property. Obvious downsides to consider include:

• Noise complaints – such as barking

• Damage to the property – such as urination on carpets

• Odours – such as from litter boxes and lack of appropriate grooming

• Injuries to other tenants or neighbours

While these issues can be a cause for concern, the majority of them can be combated by a proper tenant screening  process and by making pet-specific stipulations to your rental agreement. For example, you may restrict the ownership of certain aggressive breeds of dogs as well as the number of pets allowed in your rental. You may even choose to only allow cats on the property, rather than dogs, or vice versa, as well as advising that any damage to property will be deducted from your tenant’s deposit. Other guidelines you may consider in your tenancy agreement include those regarding waste cleanup and pet behaviour.

Placing stipulations such as these in the rental agreement allows you to give your tenant a degree of freedom when it comes to pet ownership, keeping your property desirable and ensuring tenants are happy, while giving you peace of mind.

As mentioned, a thorough tenant screening process is vital to ensuring you don’t encounter pet-related issues with future tenants, and it’s advisable to hire a Property Manager to carry this out, as well as the overall general management of the property.

 

Legal Considerations For Landlords Regarding Pets

 

There are legal considerations that landlords should be aware of when accepting pets in your rental property. Some states have specific pet-related laws and regulations that must be followed. For example, in the Australian Capital Territory (ACT), “a lessor can apply to refuse a tenant’s request to keep a pet at a rental property under the Residential Tenancies Act 1997” (ACT Government). However, if you do give consent to keep a pet on the property, you are legally allowed to place certain conditions on your consent. Furthermore, if a tenant disagrees with a decision you make regarding pet ownership, they may apply to ACT Civil & Administrative Tribunal (ACAT) to resolve the dispute.

As mentioned, these stipulations apply to ACT, so it is advisable to consult your state or territory’s government website for the correct legal information. By taking legal considerations into account and implementing proper precautions, landlords can successfully rent to pet owners while protecting their rental properties.

 

How To Market Your Rental Property As Pet-Friendly

 

To attract more tenants, consider marketing your rental as pet-friendly. You can do this by advertising on pet-related websites and social media platforms, as well as including information on your listing. Be sure to mention that your property is pet-friendly, and if you’re working with a property manager, inform them. You can even add information to your listing about what makes the local area ideal for pets, such as the locations of nearby veterinarians, dog-friendly cafes and restaurants, or top dog parks.

Think about installing amenities in your property that show you are open to renters with pets. Consider adding a cat flap, low-maintenance flooring, and fencing off the garden to create a dog-friendly play area. You should also consider including photos of the property’s outdoor space or trails in the area to immediately communicate that your property is open to all. By taking just a few small steps, you can open your property to a host of trusted candidates.

 

Final Thoughts

 

If you’re a property owner feeling anxious about renting to pet owners, it might be time to reconsider your thoughts on the matter. Landlords who are willing to take the necessary precautions can actually expand on their pool of potential candidates. By carrying out a thorough tenant screening process and adding pet-specific prerequisites to your rental agreement, you can ensure tenants are happy while minimising potential issues. Additionally, marketing your rental property as pet-friendly can attract more tenants and even ensure that they  choose to stay longer.

Managing a rental property can be a lot of work, especially when you are working around a busy life schedule. At Jonny Warren Properties, we take the hassle out of property management, leaving you free to enjoy what matters. Contact us here or call us on 0431 797 891. Alternatively, you can email us at jonny@dev.jonnywarren.com.au.

Here are five tips to point you in the right direction.

1. Check Your Property Manager’s Reviews and Testimonials 

The best way to find a property manager is by checking out what other people have to say about the quality of their service. Ask for references from past clients and check online reviews to gauge the property manager’s reputation.

2. Look for Local Experience

Your property manager should know the local rental market inside out, so they can advise you on everything from the rent you should charge to the trades you should use for repairs and maintenance. 

3. Review their Marketing Efforts

Your property manager will be responsible for marketing your rental, so you want to make sure they know how to find quality tenants. The best way of checking this is to see how they advertise the other rental properties on their book. Pay attention to the listing description and the quality of the images. 

4. Listen to your Instincts

A property management company may seem fantastic when you’re doing your research, but nothing beats meeting the team in person. First impressions count, after all. What’s more, how they interact with you will likely be how they interact with your tenants, so you want to make sure they are friendly, professional, responsive and great communicators.

5. Read the T&Cs

A good property management company should have nothing to hide, so they should be upfront about their fees and any other crucial details. That said, you should always read the terms and conditions carefully before you sign a property management contract.

 

 

 

Questions to Ask a Property Manager

Want to know how to find a good property manager? 

Well, once you’ve identified a few candidates, you should ask them several questions to help narrow down your choice. Here are some suggestions:

• Can you tell us about your experience managing properties similar to ours?
• How do you screen prospective tenants?
• How do you handle rent collections and late payments?
• How do you handle maintenance and repair requests from tenants?
• Can you provide references from past clients?
• How many properties do you manage as a company?
• How do you communicate with landlords and keep them informed of any issues?
• What are your fees for property management services and what do they cover?
• Why should I choose you over a competitor?
• Can you provide a sample of your standard lease agreement and explain any changes you would make for our property?

 Remember to ask follow-up questions and clarify any points that are not clear. The goal of the interview is to get a good understanding of the property manager’s skills and methods, so you can make an informed decision about who to hire.

At Jonny Warren Properties, we offer top-quality property management services for investors in and outside of Canberra. Get in touch by filling in this form, calling 0431 797 891 or emailing jonny@dev.jonnywarren.com.au.