Using tenancy databases to help secure quality tenants
- Posted By Nikki Montaser
There is a range of tools and resources available to landlords to help you find quality tenants. Tenant databases can be a helpful resource to check and determine if prospective tenants have any "black marks" against their names. Read on to see the process and what database we at Frontdoor, find the most valuable.
Assessing rental applications is the first step.
Usually, the first step in assessing a prospective tenant is reviewing the rental application. You'll likely check if their income can cover the monthly rental amount and their references from previous landlords 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 an excellent 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 tenants. You may uncover that some potential tenants have had problems with their previous rental properties in this process.
You may not have access to all information.
It's important to note that you may not have access to all information as several databases are available. A tenant may be listed on one database and not another, and the data has a record limit of 3 years in NSW.
When can a person be listed on a tenancy database?
There are strict rules guiding tenancy databases. The tenant must owe the landlord an amount that is more than the rental bond for the property or be listed for various breaches if the Tribunal has made a termination order.
Breaches may 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
- Subletting the property without approval from the property manager or landlord
There are restrictions on listing tenants and a strict process that your property manager must follow. It's essential to be highly knowledgeable about the Residential Tenancies Act before initiating a listing.
What database does Frontdoor Property use?
We use Equifax's National Tenancy Database (NTD). This tenancy check has a lot of added features that other databases don't provide. Not only can we screen tenants against the NTD's bad-tenant blacklist, but we can also validate the applicant's identity against several government databases and provide a summary of publicly available information (bankruptcies, visa details, court records and ASIC data) in one easy-to-understand report.
There are many steps involved in reviewing rental applications. We believe checking tenancy databases is an essential step in our due diligence to secure you a quality and long term tenant.