Tenant selection is the most crucial aspect of effective property management. The recent legislative changes to how tenancies can be terminated, introduced by the Residential Tenancies Amendment Act 2020 (RTAA), only serve to confirm this. A tenant who feels respected, comfortable and happy in their home will likely seek a longer tenancy, treat the property as if it was their own, and communicate openly. For a property owner, this means peace of mind, less time with a vacant property and a layer of protection for your investment.

What Does A “Suitable Tenant” Mean?

It’s easy to talk about finding the “perfect match” for a property, but what does this actually mean in the context of the NZ rental industry? In my experience, there is no such thing as a one-size-fits-all ideal tenant. Instead, it’s vital to have a strong understanding of the property, location, local market and property owner’s plans and expectations to make this judgement and help guide prospective tenants. This is where the expertise of a property manager is especially advantageous. Working with a team that focuses solely on property management, like Quinovic, can add decades of experience to the tenant selection process.

If you’re an owner and are managing your own property, consider your goals and ask yourself who would be a good fit. If you’re looking to sell in twelve months, perhaps a group of students who have a year left of studying would be a good option. However, if you’re wanting a long-term tenancy and have a property in a quiet neighbourhood, a young family might be more suitable. Regardless of the property type and location, there are four key questions in the tenant selection process that Quinovic always considers before offering a tenancy.

‘Working with a team that focuses solely on property management can add decades of experience to the tenant selection process’

1. Are The Applicants A Practical Match For The Property?

To confidently answer this question, we require prospective tenants to fill out a pre-tenancy application form. This form complies with privacy regulations and asks applicants to share details about how many people will be living in the property, who will be living in the property, the applicant’s occupation/s and whether or not they have pets.

2. Is The Rent Affordable For The Applicants?

Viewing properties as a tenant can be an emotional process. If you walk into a home and instantly fall in love, it can be tempting to apply for a tenancy, even if it’s a bit out of your budget.

When this is the case, tenancies tend to be shorter and the financial stress can add strain to the relationship for both parties. We ensure property investments are financially protected by completing detailed credit checks.

3. What Have The Applicant’s Past Rental Experiences Been Like?

At Quinovic, we always complete reference checks as part of our due diligence. This is an extra step that every rental property owner should take to protect their investment. A reference check is generally a call to three referees, including prior property owners, or an employer if it is an applicant’s first time renting. We ask about their character and their previous rental experiences, including rent payment history and how well they maintained the property.

4. What Will The Manager tenant Relationship Be Like?

We answer this final question with a simple face-to-face conversation during the property viewing. It’s important to establish open lines of communication and a trusting relationship from the start.

This way, if there is an issue with the property, a change in the tenant’s plans, or the possibility of financial difficulties, the tenants will feel more comfortable sharing this with you early.

Both tenants and property owners want an easy, secure relationship. Investing time into a thorough tenant selection process is the best way to ensure this.