June 17th, 2025
A tenant’s guide to signing a new lease
Blog
Blog
It’s a must for any landlord or Property Manager to find the right tenant who pays their rent on time, maintains the property well and follows lease terms (including strata by-laws).
To ensure you approve of the right person to live in your home or a property you manage, it’s important to conduct a thorough screening process — including background checks and character references.
Read on to see how you can effectively screen tenants to safeguard your investment or business and ensure a smooth renting process.
Prior to accepting applications, you should define solid rental criteria. These should be:
Ensuring the tenant can meet income requirements and have a stable source of income that comfortably covers the cost of their rent.
Prospective tenants must also have a strong credit score, as this typically reflects financial responsibility.
It’s also advised to review the potential tenant’s rental history, as prior evictions or excessive moving may be warning signs.
It’s also important to screen for criminal backgrounds, as allowed by local regulations. Look out for serious criminal offenses, as this reflects the tenant’s character and behaviour.
Posting the criteria beforehand facilitates transparency and eliminates unqualified candidates.
An effective rental application collects basic information, including:
– Full name, contact details and identification.
– Employment details and income verification.
– Rental history with landlord references.
– Authorisation for background and credit checks.
This step sets the stage for further screening.
Tenant screening through background and credit checks is essential.
A credit report shows financial responsibility and a background check ensures no serious criminal issues as well as good character.
Use the services of reputable tenant screening companies to get detailed reports, as supported by legislation.
To prevent rental payment issues, it’s important to verify a potential tenant’s employment and income.
Property Managers can phone the tenant’s employer to ensure job security and income stability. If the tenant is self-employed, request tax returns or bank statements.
Previous rental history is an indicator of future performance and reliability. Property Managers should phone previous landlords and ask:
– Did the tenant pay rent on time?
– Was the tenant subject to any complaints or damages?
– Would they rent to them again?
A positive reference assures you the tenant’s strength of character and reliability.
Meeting the potential tenants gives information which cannot be obtained from their documents.
Observe their attitude, responsiveness and communication. A short conversation about expectations and lease conditions can help make compatibility clear.
Though unconventional, a search of an applicant’s social media can provide additional information on their lifestyle. This step needs to be executed cautiously and ethically.
Choices must be based on data, but instinct comes into play as well. If something doesn’t feel right — such as inconsistencies in their application or evasive answers — dig deeper or attempt a different candidate.
Effective tenant screening protects your property or business reputation, finances and peace of mind. By setting standards, verifying credentials and assessing tenant behaviour, you can recognise reliable renters who are assets to your investment or rental business.
A thorough screening process ensures long-term success and minimises future conflicts.