Tenant Screening Guide
The right tenant makes property management easy. The wrong one creates headaches for years. This guide ensures you get it right.
What's Included
A bad tenant decision can cost landlords thousands in unpaid rent, property damage, and legal fees, as well as damaging your reputation in the process. Thorough screening is your first and best defence against problem tenancies.
This guide covers:
- Application form essentials and red flags
- Employment and income verification process
- Reference checking scripts and questions
- Tenancy database check interpretation
- ID verification and fraud prevention
- Affordability calculations (rent-to-income ratios)
- Handling multiple applications fairly
- Documentation requirements for compliance
- Consistent scoring frameworks
The screening process
1. Application review
Start with the application form. Look for completeness, consistency, and red flags. Incomplete applications suggest lack of organisation. Gaps in rental history need explanation. This guide shows you what to look for.
2. Employment verification
Confirm employment directly with employers rather than relying solely on payslips which can be fabricated. Verify position, tenure, and income. For self-employed applicants, request tax returns or accountant letters.
3. Reference checks
Speaking to previous landlords or agents reveals more than any document. Use the scripts in this guide to ask the right questions, such as their rent payment history, property condition, and whether they would rent to them again.
4. Database checks
TICA, NTD, and other tenancy databases flag previous issues. Understand what listings mean, how to interpret results, and when a historical listing should (or shouldn't) disqualify an applicant.
Red flags to watch for
Urgency and pressure
Applicants who pressure you to approve quickly, offer extra rent upfront, or try to skip steps in your process. Genuine applicants understand that thorough screening protects everyone.
Inconsistent information
Details that don't match between application, documents, and verbal conversations. Employment dates that differ, addresses that don't align, or stories that change warrant deeper investigation.
Reference reluctance
Applicants who can't or won't provide landlord references, offer only personal references, or give references that are uncontactable. Everyone has some rental history, so be sure to dig deeper if they claim otherwise.
Affordability stretch
Rent exceeding 30-35% of gross income creates payment risk. While you can't discriminate based on income source, you can (and should) assess overall affordability against total household income.
Who this guide is for
This guide is for property managers who want to improve their tenant selection and reduce problem tenancies. Whether you're new to property management or experienced but want to systemise your approach.
It's particularly valuable for teams wanting consistent screening standards across multiple property managers, ensuring quality doesn't depend on individual judgement.
Download your copy and start selecting better tenants.
Tenant Screening Guide
Introduction
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1. Database Segmentation
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2. Reactivation Scripts
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3. Timing Strategy
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