How to find a good tenant?

Discussion in 'Property Management' started by JordanHrovat, 29th Nov, 2017.

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  1. JordanHrovat

    JordanHrovat Member

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    Hey everyone,

    I have a question for all Property Managers on here!

    How do you guys vet tenants? What are all the questions and processes you use to ensure you choose a quality tenant for the home?

    Thank you all in advance!

    Jordan
     
  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Getting quality tenants is more than about the screening, there's a couple of steps before that.

    First and foremost having a well maintained, updated home. You can't serve up junk and expect that people will like it.

    Then, marketing it (and pricing it) to attract the right type of people in. Similar to the above, good quality tenants can get approved anywhere and its the ones left over who have to go for the overpriced properties.

    So then vetting usually comes down to:
    Work references and payslips to verify
    Previous PM/LL references and ledger to verify
    TICA
    Social media
    Etc
     
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  3. JordanHrovat

    JordanHrovat Member

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    Thanks DT,

    Makes a lot of sense. I suppose it really comes down to marketing it correctly.

    In regards to the vetting process:
    Are there many more things to look for apart from those mentioned above?

    I would love to know in detail, what vetting questions are recommended by professional property managers.

    Cheers
     
  4. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Avoid all sad stories. Some PMs actually listen to them. Its a warning alert. I'm not into social welfare at my expense.
     
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  5. Stoffo

    Stoffo Well-Known Member

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    I won an application once, the PM chose myself over the other applicants because i was the only person at the open to take my shoe's off before entering onto polished floor boards !

    Way back when, i rented ......
     
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  6. neK

    neK Well-Known Member

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    I believe there is also the vetting that occurs upon meeting the person.
    Its that "vibe" a person gives out.

    I ask my PM one main question
    "Does the person seem like a d-head"
     
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  7. Paul@PAS

    [email protected] Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Like that. I also think every IP buyer should assess minor changes to property to tenant proof it. Like making it impossible to park cars on the lawn and ensuring appliances and decor / finish etc are in great condition. I ask - Would I find that acceptable ? I had a property with a great garden and offered it with gardens maintained as the risk to allow someone else to destroy it was too high. Benefit was the lawn dude kept his eye on things too.

    Removing problem is better than addressing concerns later.
     
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  8. D.T.

    D.T. Specialist Property Manager Business Member

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    Yep. Open homes are almost like an interview in a way. If they give off a ******** vibe, I'd rather pass on them if possible. Its all about maximising landlords investment and saving my time - less issues down the line.
     
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  9. Angel

    Angel Well-Known Member

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    One of my great tenants was a young Mum. She had recently left her husband and was concerned that the other residents in the unit block would not like having a single mother around. My PM mentioned that the little girl was well groomed and sat quietly and politely in the office while Mum did her application with the PM. That was all I needed to hear about their characters.

    Now I wish other applicants would bring their dogs with them ......
     
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  10. Jamie Moore

    Jamie Moore MORTGAGE BROKER - AUSTRALIA WIDE Business Member

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    Hey Jordan

    I'd focus on finding a "good" property manager rather than a good tenant.

    They're the experts when it comes to appointing decent tenants - let them do the screening for you.

    Where's the property located? You might find a good PM on this forum.

    Cheers

    Jamie
     
  11. kierank

    kierank Well-Known Member

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    +1.

    You took the words straight out of my mouth!!
     
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  12. Momentum

    Momentum Well-Known Member

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    It would be good if a PM could make a rough list of what they do, maybe things like..
    - call employer of prospective tenant to verify work status and salary
    - check TICA for any listing
    - get 3mths of bank acc statements showing salary going in?
    - google search of their full name and read first 5 pages of results
    - criminal background check?
    - social media checks on fakebook, twitter looking for dirt
    - more?
     
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  13. neK

    neK Well-Known Member

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    Why?
    Most PM's include a list of items they require from tenants.
    If you want the list, ask your PM for it. Or go apply for a rental property.

    I would crack the shts if PM called my employer.
    Here are my payslips as you requested and my bank statement, if that's not enough i don't want your damn property.
    Its a fine line between getting information and just over top invasion of privacy.
     
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  14. MyPropertyPro

    MyPropertyPro REBAA Buyer's Agents Sydney Multiple Areas Business Member

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    @D.T. has really nailed it with the property argument. Better properties that are in better condition attract better tenants and the competition is higher so you have a better choice. There is a direct correlation between how much a landlord considers maintenance (both routine and preventative) a part of the attraction for tenants and the quality and longevity of tenants. Denying fixing minor items or not conducting yearly items to save a couple of hundred bucks will usually cost you more elsewhere.
     
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  15. Momentum

    Momentum Well-Known Member

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    Why not? Oh that's right cos some here are slack and I wouldn't trust them as my PM if they can't disclose what checks they do (besides the list given to tenants).
     
  16. neK

    neK Well-Known Member

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    @nambis
    Like i said, if you want the list, simply ask them in person as a tenant and you'll get it.

    A good PM not only vets the tenant, they also vet the owner.
    Some owners simply aren't worth dealing with because their expectations are far too high (and those with high expectations usually also expect the lowest fees too).

    I could speak with my PM and be a real prick and get him to lower fee. He charges me around $6,400 per year in fees. End of the day, he does a great job.

    If i got him to lower his fees and everyone did the same, it would get a point where he wouldn't bother being a PM anymore as its not worthwhile or he would need to take on more clients and his service would suffer.

    Pay people what they are worth - business works better when everyone wins.
     
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  17. D.T.

    D.T. Specialist Property Manager Business Member

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    I agree with this - payslip and bank statement isnt full story. Employers have told me that the person is off sick all the time, or their position is going to change soon. "If you had an IP, would you rent to them?" Is an interesting open question which gets an array of responses.
    Yep, exactly. We've unfortunately turned away both potential and current clients because they're not fit to own property, or their property isnt fit to house people. They're likely to end up in a legal mess and we don't want to be embroiled in that.
    Love this bit a lot :)
     
  18. JordanHrovat

    JordanHrovat Member

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    Thank you everyone for taking the time to give me this advice. I greatly appreciate all your insight!
     
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  19. Momentum

    Momentum Well-Known Member

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    I don't want the list the tenants see (very transparent) , I want the behind the scenes list of what a PM does when checking a prospective tenant.
     
  20. PJ1

    PJ1 Well-Known Member

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    Ive recently found that finding a great tenant is very similar to finding a great property. D/D is the difference between a pleasant investment and an expensive pita.
     
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