Inspections, Applications and the Selection Process
It all starts with the inspection. Find out what you need to know to select a tenant.
Everything you need to know about selecting a tenant, from running inspections to choosing applications.
As much as we’d all love prospective tenants to just sign on the dotted line, there are very good reasons for both owners and tenants to go through a thorough process of vetting one another before entering into an agreement.
It all starts with the inspection. Every week there are thousands of property inspections conducted around the country. Depending on the market conditions at the time, a property can be rented after just a single inspection, or in some cases, multiple inspections are required.
Although inspections are a fairly routine process, it helps to have a checklist which you can refer to each time, so that you don’t forget or skip over important items.
On this page you can find a checklist that you may find useful as a reference point prior to inspections.
Please take note that its not a completely comprehensive for every owner in every situation, we recognise there are always specific items for your unique circumstances.
The Inspection Checklist
- Publish your ad with inspection times so that people come through in groups rather than single time slots
- Notify your current tenants in writing (email/sms) at least 7 days before the inspection time
- Arrive at least 15 minutes before the inspection time and start on time
- Put up a sign if the entrance is difficult to find, or leave instructions to buzz in an apartment block.
- Ask tenants to take pets/animals out of the property during the inspection
- Ensure the property is clean and as clutter free as possible
- Open all doors, windows and blinds
- Remove hazards that can cause people harm. E.g. electrical cords, wet floors, children's toys, sharp objects, uneven steps etc).
- Ask tenants to keep their valuables out of sight during the inspection
- Stand at the front door to greet those arriving at the inspection
- Be prepared for any questions the prospective tenants may have - e.g. start date, weekly rent, noise levels, hot water etc.
- Have application forms or the web address for the tenant to complete the form online
From Inspections to Applications
It’s likely that a number of people who inspect your property will now want to apply. There are industry standard applications as well as state based templates, but ultimately you should be collecting information that will help you decide who is the right tenant for your property.
There are two questions that every owner should ask themselves about their prospective tenants:
1. Can they pay?
2. Will they treat the property with respect?
While it may seem obvious who the right candidate is based on answering these questions, it’s worth considering some scenarios.
Scenario 1.
You are deciding between a single high paid lawyer, or a young professional couple with modest income, both of whom are employed – who do you pick?
Most people would say the lawyer, as the high salary can provide you with a higher return on your property. However, it is worth considering that the rent you have requested is likely to be the same in both instances, and should the high paid lawyer lose their job, they will no longer be able to pay.
The couple, on the other hand have two sources of income, and in the event that one loses their job, the other can still pay. This will mean you will not incur any inconvenience or loss of rent.
Now, this may not be the correct answer in every situation, but it is certainly worth thinking about as you make your decision.
Scenario 2.
Your applicant presents very well on paper. A secure job for several years, a solid bank balance, and has been pleasant to deal with over the phone.
However, when you start to dig a little bit deeper into their references and make a phone call to a past landlord, you find out that they were often late to pay their rent and in fact did not get their bond back in their previous rental due to damage to the property.
It is worth considering that even when you think you have the right person, a more thorough check may prove that they are in fact not the right person to have in your property.
How can you be certain about your decision?
Unfortunately before the lease begins, it is impossible to guarantee with 100% certainty that you are picking the right person.
We strongly recommend that you take the time to make a few phone calls for reference checks, and also run a tenant check report.
RentBetter provides you access to the NTD - National Tenancy Database to add extra protection.
Considering how important rental income is for most people, it is well worth the effort to find out whether your prospective tenant has been timely with past rent payments and does not have any marks against their name on the tenancy database.
To run an NTD report, head to: https://rentbetter.com.au/extras/tenant-check
Key takeaways
Give current tenants notice of inspections. Use a simple inspection checklist to ensure you don’t forget anything.
Select tenants based on ability to pay and willingness to treat your property with respect
Always conduct reference checks and run a (NTD) National Tenancy Database report for extra protection.
Download the Self-Management eBook.
Want to understand how to rent out and self-manage your property? Start here - Your step-by-step guide to renting out your own property will include:
- How to rent out your property - Six simple steps from advertising your property through to signing a lease and managing rental payments.
- How to start your lease - State-by-state guide for setting up you lease, collecting bond, conducting a condition report & more.
- Inspection checklist - Everything you need to do to organise and manage inspections.
- What to do if a tenant doesn’t pay? - What to do next and which state-based laws apply.
- How to advertise your property - What to include in your property ad to make it stand out.
- How to select a tenant - What questions to ask and background checks to make.
- How to collect rent - Payment schedules, rental ledgers, receipts & more.
