How We Help You Screen Your Renters: A Step-By-Step Guide
You may have just purchased your first investment property or have an established real estate property portfolio. Either way, you will look to rent out your property at some stage.
Here, we outline the steps we take at Dynamic Residential Australia to screen future renters and why it’s good to take advantage of professional property management. It will assist you, the rental provider, find respectful and loyal renters to inhabit your investment property.
Why is screening renters important?
You may not have time to manage it independently, or you might lack confidence and need a tried and tested screening process by a professional to ensure you choose responsible renters rather than relying on a ‘gut feel’. If you don’t thoroughly screen your renters, you’re putting yourself and your property at risk of renting to someone who isn’t a good fit, which may cost you time, stress and a lot of money down the line.
That’s where your Dynamic Residential property manager can help, ensuring a reliable income stream for you and that the people you choose will care for your property while following the law and their contractual obligations.
Let’s break it down.
First impressions matter
Did they present well at the inspection? Were they polite and friendly to deal with? Were they respectful? Our property managers will meet prospective renters at the property and provide feedback to the rental provider to assist them in the screening process.
Confirm current employment
Once we have established a potential renter or group of renters, we’ll verify their employment references, including their current employment status. Do their employment dates add up? We also request pay slips via the rental application form to assist us in this process.
Confirm other income sources
To make sure the applicant’s income is suitable to meet rental payments for the duration of the lease, we’ll review their savings balance and any investments, government support or scholarships. We want to ensure that the successful applicant is not spending over 35% of their income on rental payments, avoiding potential financial hardships.
Confirm rental references
We will contact the applicant’s two previous real estate agents or private landlords and ask a few screening questions. We’ll ask them about the applicant’s rent payment history, the upkeep of the property, the vacate process, and whether they were pleasant and easy to deal with.
Cross check referees
So they’ve given you some referee contact details. Are they legitimate? We’ll help verify this by checking the referee’s email and other information. Sometimes people provide fake references linked to friends and family or the applicants themselves. While it’s rare, we will use an automated system that also cross-checks a reference’s IP address, making sure it is different from the potential renters’ IP address.
For self-employed applicants
Suppose you receive an application from a self-employed person. We assist you by running both a credit and ABN check on their company and verifying their website and any linked social media accounts.
For international applicants
It is important to obtain copies of Visas for international applicants to confirm their residential status and the terms of their stay in Australia. The last thing you want as the property owner is having someone move into your property illegally and for a potentially very short time.
Run thorough database checks
Once we are confident that the potential renter passes all the above checks and is close to being offered the property, we can input their details into a rental database at the request of the rental provider. This incurs a small fee.
Through our database company, NTD, we check whether the applicant has been blocked from other properties, defaulted on rental payments, or evicted previously. We’ll extend this to criminal checks so we know your applicant is trustworthy and law-abiding.
And the most important step in screening potential renters…
Is transparency. Once we’re satisfied that the successful applicant/s has applied honestly and with a clean record, we will present applicants to the rental provider to make the final decision.
How can I get help to screen renters?
Our expert team at Dynamic Residential Australia will take care of the screening process as part of our dedicated property management. We understand that screening renters can be time-consuming and fraught with risks. You want the person living in your Melbourne property to abide by the lease agreement, keep the home in good order, vacate the premises reasonably, pay the rent on time and be pleasant to deal with.
We’ll work with you to understand your criteria and your concerns. Then we’ll pay meticulous attention through our tried and tested screening process above to ensure your next renters are the right fit for your property. That way, you won’t have to spend unnecessary time, money or stress finding better ones.
Call the Dynamic Residential team today to learn more about our full-service property management agency with a personalised, boutique-style approach on (03) 8600 1200.