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I have 2 rental houses and am sick of the real estate agents providing such bad service. I have changed real estates 3 times over the past 5 years and I have come to the conclusion that I am the best person to look after my own properties.

I have started making up application forms and wanted to know if there was anything I could include in them to help screen out the good from the bad.

I have so far included stuff like:

  • Name & contact details
  • Employment details including length of work
  • Current and previous addresses and rents paid
  • Landlord/Real estate details

Also, what information apart from Rental History, Pay Slips & IDs should I be asking them to provide me with.

Are there any other tips I can include in my selection criteria and assessment of possible tenants?

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    Get references from previous landlords, his(her) current employer(past employer reference is useless to say the least) and get a credit check done ?? And from the details you are asking, it assumes you are asking a renter for too much details. I will be wary if a landlord asks me to provide so much documentation. Playing safe is OK, but trying to compile a life history of a renter is preposterous. – DumbCoder Apr 17 '13 at 8:16
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    @DumbCoder, I am just asking for their past rental history (to see if they pay on time), a copy of pay slips (to confirm their income is what they say) and a copy of their IDs. Why is this too much information? – user9722 Apr 17 '13 at 9:10
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    @DilipSarwate, I am asking about the whole application process, not just what to ask on the application form to determine if their income is stable. I am asking about their rental history and other selection criteria. I have had tenants in the past who were employed but were always late on rent sometimes up to 3 months late. – user9722 Apr 17 '13 at 21:19
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    @Chad, we have standard lease documents issued by the department of Fair Trading which you are supposed to use for residential leases. The only things you can add is your own Special Conditions - but these cannot conflict with the standard conditions. – user9722 Apr 17 '13 at 21:22
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    @Chad, I don't know how things work in the US, but in Australia no one goes to a lawyer to draw up a residential lease let alone to draw up a an application form. As George said their is a standard lease and the special conditions basically contain clauses specific to that property, for eg. if they lose the keys how much they have to pay to replace them, or what is included under the lease and what is not. For one property we use the garage for storage so we have that listed in the special conditions as not included in the lease. – Victor Apr 18 '13 at 21:18
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There are a lot of things you can do to get a better tenant. This answer relates specifically for Sydney Australia.

Regarding the Application Form:

  • Name & contact details
  • Employment details including length of work, name & contact details of HR manager
  • Current and previous addresses and rents paid, and lengths of time at these addresses
  • Landlord/Real estate details for each place listed on form
  • whether they smoke
  • any pets (indoor or outdoor)
  • Emergency contact detail (in case of emergency)
  • Get them to sign the bottom of the form below a statement which authorises you to ask questions about them (this can be used if you need to talk to their real estate agent or their employer about them - sometimes they will not talk to you unless you have the applicant's consent).

Regarding Information for the applicant to provide you:

  • Rental history - at least 6 months Rental Ledger from real estate agent or copy of their bank statement if they rent privately and pay rent by direct debit (I usually do not accept rental receipts from a private landlord as anyone can buy a a receipt book and fill it out).
  • Last 3 pay slips as a minimum, or proof of regular income if they are self employed.
  • 100 point ID check
  • If renting through a private landlord - copy of water rates or council rates to confirm details of landlord (they could just pretend a friend of theirs is the landlord).
  • copy of any welfare payments they might receive.
  • any references (mainly from previous real estate agents or landlords). Note this is a much lower priority than their rental history.

Regarding Selection Criteria:

The 3 top priorities are:

  • Rental history - look for someone always paying on time (this is my number one criteria) - someone who has missed payments or paid late in the past is more likely to do it in the future.
  • Cleanliness of the tenant - this can be quite hard to check since they have not lived in your place yet, so what I do is tell them that if we short list them then we go to their current home to see how they live and how clean they are. They don't have to accept, but if they don't then they may be hiding something. We find most good tenants have no problems letting us in. We have usually checked everything else by this stage so if we are happy we usually sign the lease whilst at their place.
  • Current employment, stability of employment and income level.

Other things you can check:

Always confirm with the real estate or landlord regarding the rental history they have given you. We have had someone in the past who had forged their rental ledger, we were about to go with them, but a last check with their real estate agent confirmed that the ledger they gave us was not provided by the agent. They faxed us the correct ledger which was very different. This one check saved us a potential big problem.

We usually also screen people when they ring up to see if they have the required information. If they don't then we do not accept an application from them and save our time having to show bad tenants the property. Instead of having 20 to 30 people during a showing we might have 2 or 3. This gives us time to talk with each applicant and get to know them a bit. You can learn a lot about a person just by talking to them. But you always do your checks to confirm everything.

Also, be wary of people with no rental history; we usually do not accept them, including home owners who are selling their home. If you're asking, surly if they are home owners they should take care of your property. Not always the case. If someone has never rented before they may be renting for the short term before they buy again. If they are in a house they think is temporary, do you think they will treat it the same as a house they treat as their own? Usually not. There are exceptions, but do you want to take the risk. That is why we have the policy of not accepting an application if they have no rental history - again this is the number one priority - a good rental history, as in this case history will usually repeat itself.

It is your asset and you need to do everything in your power to protect it. A good tenant is the difference between a great asset that can provide for you now into your future and a head-ache you want to get rid of.

Also, one thing I forgot to include is that we allow outdoor pets (dogs and cats) only, and if they do have pets there is usually an additional $10 per week added onto the rent (we include this in our advertising). Small fish in a fish tank is an exception. We charge the extra $10 per week in rent because the pets can add to the wear and tear on the property.

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    Another tip I had been given before was to check out their vehicle - is it cleaned, or is the back seat filled with garbage? – Canadian Luke Jun 3 '15 at 17:40
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    @CanadianLuke: assuming they have a car. And I know folks whose cars are a mess but well maintained, and whose apartments are likewise clean but far from neat; hurried eyeball can be z misleading tool. – keshlam Jun 3 '15 at 22:10
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I did not see anything regarding a credit check or similar. Having a third party that documents patterns of financial behavior will help to weed out those that are unable to afford. Also having a financially strong guarantor also puts you in a better position to collect: especially with the younger renters. Finally ensuring that they have the income (rent should be less than 1/3 of monthly gross or similar criteria).

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    If you have a copy of their rental history why would I need to pay for a credit check as well? – user9722 Jan 6 '17 at 22:21
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I use a service called LeaseDefend and they screen tenants by alternative data like bank info. I can see a lot of info. Such as...

  • how much they make
  • how often they are paid
  • where they get income from
  • How many NSF's they have
  • How they pay cell phone, utilities, rent, and other non-credit stuff
  • I can see up to 2 years of stuff

It gives me a lot of info and since I have used it I have not had a single eviction and only 1 slow pay.

Best of all it is free for me. I can tell the site to charge the tenant/applicant and they pay for the report.

Hope this helps.

protected by Community Jun 2 '15 at 12:49

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