A Story For Landlords

Did you ever wonder how certain real estate agents in Australia select tenants for their clients, i.e. the Landlord. It is an important job being a property manager, as they assist the Lessor/Landlord in determining the right tenant for their property. I believe that the property manager should have in their mind, that when selecting a tenant for their client, they should treat it like they were selecting their own tenants for their own property. I think it is very important for even the lessor to think like this of their property manager (even mention this to the property manager that they select the tenant as if it was for their own property) before signing any forms concerning the appointment of agents.

There are a number of selection criteria that the property manager should consider when selecting tenants. This selection process should also be documented by the property manager (e.g. in Queensland this is done by using the REIQ’s Verifying Tenancy Agreement Form). Some of these checks are:

·        Positive Identification – In this criteria the property manager should check the validity of the prospective tenant. This is achieved by checking things such as: The tenant’s driver’s license; Medicare Card; Their utilities bill e.g. Gas, Power. This assures that the person who they are screening is the person who they say they are.

·        Their tenancy record – This is achieved by looking at the applicant’s previous rental record and to see what type of tenant they have been previously . Examples of questions that should be raised by the agent are: Have they breached previous tenancy agreements ? Why are they moving? Have they been refused to rent a property from a previous agent or lessor? This information can also be ascertained from commercial databases such as TICA (Tenancy Information Centre Australasia), and CONSOLE.

·        Financial Status-This is pretty much a no brainer where it basically means can the prospective tenant pay the rent. To check their financial capability things such as pay slips, tax records, Centrelink Statements should be used to assess their financial credibility.

·        References – Just like applying a job one must have references so that your future employer can see what type of an employee you have been. No difference here where the tenant’s references can be checked by the agent to help their screening on the tenant.

  Once the tenant has been screened by the property manager, the property manager should engage the Landlord/Lessor, and go through with them about the prospective tenants and their checks on the prospective tenants. Then after the property manager’s consultation with the landlord it will be the landlord who should select the tenant based on the advice of the property manager.  Once the tenant has been selected then the Tenancy Agreement Form should be filled. In Queensland this is Form 18A provided by the Residential Tenancies Act (RTA). It is important to note that this agreement is only between the lessor and the tenant.  The tenancy agreement will detail such things as:

·        The Lessor’s and Agent’s Details

·        Property Details

·        When and how the rent is to be paid

·        The Rental Bond

·        Number of people to live in the rental property

·        Is the rent a fixed term or periodic tenancy

It is also important for the property manager to do an ‘Entry Condition Report ‘ (In Queensland this is RTA Form 1A) detailing the state of the rental property prior to the tenant moving in. Copies of the condition report are given to the tenant and are to be signed by the tenant. This helps in determining how much of the rental bond is to be refunded  to the tenant after their stay in the property, meaning have they kept the premises in good order e.g. didn’t punch any walls, stained carpets with liquids.