Why thorough screening matters
Many landlords focus heavily on finding a tenant quickly — understandably, since vacancy is expensive. But the cost of a problem tenant — arrears, damage, disputes, tribunal proceedings, and re-letting costs — can far exceed a few weeks of vacancy. A rigorous but fair screening process pays for itself many times over.
In NSW, landlords and property managers cannot discriminate based on protected attributes (race, gender, age, disability, family status etc.). Screening must focus on objective criteria: rental history, income, and references.
What a good rental application should include
Before any interview or reference check, every applicant should complete a comprehensive written application covering:
- Full legal name and date of birth for all adult occupants
- Current and previous addresses (at least 3 years of rental history)
- Contact details for current and previous property managers or landlords
- Current employer details and employment duration
- Gross weekly or monthly income with supporting documentation
- Number of occupants and any pets
- Proposed lease start date and preferred lease term
- Photo ID (driver's licence or passport)
Income and affordability checks
A widely used benchmark in Australian property management is that a tenant's gross income should be at least 2.5 to 3 times the weekly rent. For a property renting at $800/week, that means looking for a household gross income of at least $2,000–$2,400 per week (roughly $104,000–$125,000 per year).
Supporting documents to request include:
- Recent payslips (last two to three pay cycles)
- Employment contract or letter confirming role and salary
- For self-employed applicants: last two years of tax returns or an accountant's letter
- Centrelink income statements if applicable
NSW Fair Trading note
Under the Residential Tenancies Act 2010 (NSW), landlords cannot refuse a tenancy solely on the basis that an applicant receives government benefits. Income adequacy — regardless of source — is the relevant consideration.
Reference checks — the questions that matter
Reference checks from previous landlords or property managers are the most valuable part of the screening process. When you call a reference, ask specifically:
- Did the tenant pay rent on time, consistently?
- Were there any arrears? How were they handled?
- Was the property returned in good condition at the end of the tenancy?
- Were there any complaints from neighbours?
- Did the tenant report maintenance issues promptly?
- Would you rent to them again?
That final question is the most telling. A hesitant or qualified "yes" is often as informative as a "no."
National tenancy database checks
Property managers routinely check applicants against national tenancy databases such as TICA (Tenancy Information Centre Australasia) and NTD (National Tenancy Database). These record previous tenancy defaults, evictions, and unpaid rent.
As a self-managing landlord you can access these databases directly for a small fee. If you use a property manager, this is a standard part of their screening process and should be included in their letting fee.
Red flags to watch for
Beyond the formal checks, experienced property managers watch for:
- Gaps in rental history with vague explanations
- References who are friends or family rather than previous landlords
- Pressure to move in immediately or bypass normal processes
- Unwillingness to provide documentation
- Income that seems inconsistent with stated employment
- A history of short tenancies without clear reasons
Thorough tenant screening is one of the strongest arguments for professional property management. An experienced Inner West property manager screens hundreds of applicants a year and develops a sharp instinct for quality tenants. If you'd like to know more, we can connect you with a specialist at no cost.