The landlord’s guide to finding the perfect tenant
It’s not all about your gut feeling when finding tenants. The best tenants are a puzzle, and every piece of information you have helps you solve it. Because everyone knows, as a property owner, there are rental horror stories that keep you awake at night.
Renting out your property can be rewarding, but only if you find the perfect tenant. A dream renter pays rent on time, respects your property, and sticks to the lease terms. A nightmare tenant? Missed payments, property damage, and constant headaches.
How do you make sure you get the former, not the latter? You use a comprehensive screening service to evaluate tenancy applications quickly and make more informed decisions.
This guide walks you through the rental screening process, from identity verification to checking rental history, so you can confidently choose a quality tenant.
Why tenant screening matters in finding the perfect tenant
Have you ever tried to remove tomato sauce from a cream carpet? Or dealt with months of unpaid rent? Neither is a pleasant experience. That’s why proper tenant screening is your insurance policy against potential risk.
Research shows that proper tenant screening can reduce evictions by as much as 45%. Now, that’s an incentive.
As a landlord, your rental property is a business—and every applicant is a potential business partner. Would you hand over the keys to someone without checking their background?
Skipping a tenant check can lead to non-payment, property damage, and even legal battles. According to the Australian Financial Security Authority, over 10,000 Australians declared bankrupt in the past year alone. That’s a risk no landlord wants to take.
A thorough tenancy check helps you:
| Avoid late payments and non-payment issues
| Reduce the risk of prior evictions and court judgments
| Identify tenants with criminal convictions or reported breaches
| Ensure the tenant can afford the rent.
How to vet potential tenants
To screen tenants properly, let’s consider three key areas — we like to call them the screening trinity:
1. Identity verification: Who is this person?
Before anything else, you need to confirm that your prospective tenant is who they say they are. Identity fraud is on the rise, and landlords can’t afford to take chances.
Ask for:
| Driver’s licence or passport
| Proof of current address (e.g., utility bill)
| Employer details for verification.
You can also cross-check with the Equifax National Tenancy Database (NTD), which flags any reported breaches, fraud alerts, or rental history inconsistencies.
2. Rental history: Have they been a reliable renter?
A tenant’s past behaviour is the best predictor of their future actions. That’s why real estate agents and property managers rely on tenancy databases to assess an applicant’s rental history.
Key things to check:
| Past rental addresses—How long did they stay at each property?
| Late payments—Have they missed rent before?
| Previous evictions—Were they removed due to unpaid rent or breaches?
| References from past landlords—Did they follow lease agreements?
If a potential tenant has a history of payment defaults, court judgments, or bankruptcy, it’s a red flag.
💡 Pro tip: Always contact previous landlords, not just the current one. A current landlord might give a glowing review just to get rid of a bad tenant.
3. Employment verification: Can they afford the rent?
A tenant might seem reliable on paper, but if they can’t consistently pay rent, you’ll have problems.
To assess affordability:
| Ask for proof of employment—Recent payslips or an employer reference
| Check their income vs. rent ratio—Industry standard says rent should be no more than 30-40% of income
| Consider job stability—Long-term employment is a good sign
If an applicant is freelancing or self-employed, ask for tax returns or bank statements to confirm steady income.
4. National Tenancy Database (NTD) check: The ultimate background check
The National Tenancy Database (NTD) is Australia’s most comprehensive rental screening tool. It helps landlords and rental providers make informed decisions by flagging risks like:
| Bankruptcy—Has the tenant ever declared bankruptcy?
| Court judgements—Have they been taken to court over rental disputes?
| Previous evictions—Have they been legally removed from a property?
| Rental payment history—Any record of late payments or missed payments?
An NTD check helps property managers and landlords save time by filtering out high-risk applicants before signing lease agreements.
Common tenant red flags 🚩
Not every applicant is as honest as they seem. Keep an eye out for these warning signs:
🚩 Gaps in rental history—Unexplained periods without a rental record
🚩 Unverifiable employment—No payslips or employer can’t confirm their job
🚩 Cash payments—Insisting on paying rent in cash can signal undeclared income
🚩 Rushing the process—Eager to sign without reading the lease? They might have something to hide
🚩 Multiple evictions—A history of rental breaches or court orders.
If anything feels off, trust your instincts. A thorough tenancy check prevents costly mistakes and helps find that perfect tenant.
How to streamline the rental application process
Screening tenants doesn’t have to be time-consuming. Here’s how to evaluate tenancy applications quickly while maintaining accuracy:
| Use an online tenancy application system to collect relevant documentation
| Require all applicants to undergo a comprehensive tenancy screening service
| Automate identity verification using a National Tenancy Database search
| Set clear rental application criteria upfront to filter out unqualified renters
| Partner with an experienced property manager to handle vetting and approvals
Following these steps will save time, minimise risk, and find the perfect tenant for your rental property.
How to make screening work for you
Whether you’re a DIY landlord or outsourcing to a property manager, here’s what you need to know:
Gathering the right information
There are good questions and bad questions — and there are definitely wrong questions to ask your tenant applicants. Focus on:
| Employment history (job-hoppers?)
| Rental history (are there gaps in their rental history that need explaining?)
| Income verification (can they really afford it?)
The interview: reading between the lines
When you meet a potential tenant, you don’t just want to tick a few boxes. You want to read the room. Are they engaged? Do they ask good questions? Do they seem like someone who’ll ring you at 3 am because a light bulb needs changing?
Top tips for success
| Keep comprehensive records — believe us, your future self will thank you
| Use a standardised screening process for all applicants
| Don’t skip steps, even when you’re short on time
| Trust but verify — every time.
Your checklist for screening tenants
Before you hand over your keys, you should have:
| Confirmed employment details
| Checked rental references
| Conducted the necessary database checks
| Met the applicants in person
| Documented your process.
Putting it all together to find the perfect tenant
Good tenant screening isn’t about being fussy — it’s about doing it properly. It’s your investment, after all, so take a few extra hours now to get it right, and you’ll save months of headaches down the track. Happy screening!
Finding the tenant comes down to a combination of head and heart. You need data and gut instinct. Don’t be tempted to rush into a lousy tenancy agreement just to get a property rented quickly. Remember, having an empty property for a few more weeks is better than a bad tenant costing you sleep — and money — for months.
The property manager’s advantage to finding the perfect tenant
Not a fan of playing whodunit? Sometimes, calling in the experts is worth the cost. Property managers have seen it all — they’re like the Special Forces of tenant screening. They’ve learned the tricks of the trade, the common pitfalls, and exactly what to ask.
A good property manager is worth their weight in gold. Their task is to:
| Do all the screening legwork for you
| Stay on top of changing laws and regulations
| Have access to premium screening tools
| Save you time and stress
Finding the perfect tenant is easier with Dimosons
Tenant screening is essential—but it doesn’t have to be a DIY job. A professional property management team can handle the entire rental process, from background checks to rental applications, so you can focus on maximising your investment.
At Dimosons, we provide:
| Comprehensive tenancy screening—Ensuring only good renters move in
| NTD checks—Fast access to the national tenancy database for informed decision-making
| Full property management services—From vetting tenants to collecting rent and handling maintenance
Want help finding the perfect tenant without the stress? Get in touch with Dimosons today.
📞 Call us: (02) 4258 0088
📧 Email: info@dimosons.com.au
HELPFUL LINKS
Visit the links below for more info on leasing in NSW:
| Step-by-step guide
| FAQs
| Why choose Dimosons
Finding the perfect tenant | Dimosons Real Estate
