Screening a potential tennant

Discussion in 'Property Management' started by giraffez, 5th Apr, 2017.

Join Australia's most dynamic and respected property investment community
Tags:
  1. giraffez

    giraffez Well-Known Member

    Joined:
    4th Dec, 2015
    Posts:
    595
    Location:
    NSW
    Is it pretty normal to ask to see bank statements when considering tenants for rentals? I have 2 applicants that refuses to provide this. Is this a red flag?
     
  2. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    Refused to you or the agent?
    I've never had anyone refuse but they perceive licensed agents as being trustworthy (don't know why :rolleyes:)
    Not necessarily a red flag, do you have income statements and a ledger from previous agency? This should provide you with the information you are looking for to screen affordability
     
    Perthguy likes this.
  3. giraffez

    giraffez Well-Known Member

    Joined:
    4th Dec, 2015
    Posts:
    595
    Location:
    NSW
    agent.

    Haven't asked for income statement i don't think. But ledger does show late payments but eventually paid.
     
  4. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Were they self employed or business owners? That's usually when you need bank statements so you can verify that they earn what they say they earn.

    Payslips and rental ledger works fine in doing the above for normal workers.
     
  5. giraffez

    giraffez Well-Known Member

    Joined:
    4th Dec, 2015
    Posts:
    595
    Location:
    NSW
    Not self employed, I'll try payslips then. 3 payslips should be adequate?
     
  6. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    Whether the tenants were breached for late payments are another thing to consider.
     
  7. giraffez

    giraffez Well-Known Member

    Joined:
    4th Dec, 2015
    Posts:
    595
    Location:
    NSW
    Sorry what does this mean? What do you mean by breached and how can you tell? My agent has told me that there were late payments but eventually paid
     
  8. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    Whether a breach notice was issued by the previous agent.
     
  9. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Not sure I'd accept anyone that had any late payments... depending on circumstances. I have put some on a 6 month trial to see if they'd be good and given them long term renews once they've proven themselves.

    Begs the question though - why are you doing all this instead of your PM?
     
  10. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    Were they paid on a payment plan or were they just a week late and caught up on next payment? These are differences you may want to consider.
     
  11. giraffez

    giraffez Well-Known Member

    Joined:
    4th Dec, 2015
    Posts:
    595
    Location:
    NSW
    They are asking for instructions from me.


    Isn't that technicality? If the payment is late, its late. Regardless whether a breach was issued is how efficient the agent is. If its late for 1 day, doesn't the agent have the right to issue a breach? Some can be late of 10 days, and the an incompetent agent can sit on it and not issue anything.... but they are still late. What value does the breach have?
     
  12. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    A breach is given after 14 days
     
  13. giraffez

    giraffez Well-Known Member

    Joined:
    4th Dec, 2015
    Posts:
    595
    Location:
    NSW
    Ah okay makes sense now. And is this evident from the ledger or does my agent need to check with their existing agent

    Thanks
     
    Xenia likes this.
  14. Xenia

    Xenia Well-Known Member

    Joined:
    16th Oct, 2015
    Posts:
    3,863
    Check with agent
     
  15. giraffez

    giraffez Well-Known Member

    Joined:
    4th Dec, 2015
    Posts:
    595
    Location:
    NSW
    Thank you Xenia.