Using databases to help with finding quality renters
There are a range of tools and resources available to rental providers to help them find quality renters. Databases such as NTD or TICA can be a helpful resource to check and determine if prospective renters have any “black marks” against their names.
This article provides an overview of tenancy databases and how they can help you ensure you have quality tenants.
When can people be listed on a tenancy database?
Renters can only be listed on a tenancy database for specific breaches of their rental agreement. These breaches include intentionally damaging property, jeopardising a neighbour’s safety, not paying rent, failing to comply with a court order, using the rented property for illegal purposes, or subletting the property without approval from the rental provider.
Assessing rental applications is the first step
Usually, the first step in assessing a prospective renter is reviewing the rental application. You’ll likely check if their income can cover the rental amount and their references from previous rental providers and property managers. And if you have a few great applications, it can feel overwhelming knowing which tenant to approve. Accessing a tenancy database is a good way to complete a final layer of due diligence on the applications you receive.
Next, complete a search on a tenancy database
You can pay a membership to access a database where you can search and review prospective renters. You may uncover that some potential renters have had problems with their previous rental properties in this process. These problems may include late rental payments or not receiving a full bond refund due to property damage.
You may not have access to all information
It’s important to note that with recent changes to rental legislation in some Australian states, you may not have access to some information. For example, in Victoria, a renter’s previous property manager isn’t legally required to disclose whether the renter received their bond back in full at the end of a tenancy. Further, a renter not receiving their bond back in full isn’t always a bad sign. A renter and their property manager may agree for part of the bond to cover a final rental payment or items that were required to be completed that the renter was not able to return and complete.
Checking if a prospective renter is listed on a tenancy database can be a helpful due diligence step in reviewing rental applications. Remember, it’s just one step in the application process and ensuring you have a quality property will attract high-quality prospective tenants in the first place.
Remember, this article does not constitute financial or legal advice. Please consult your professional financial and legal advisors before making any decisions for yourself.