How to Find a Good Tenant: What Landlords Should Look For
The Property Perspective is a weekly radio show on 919 FM, airing every Tuesday at 4:15 PM with Al and Lesedi on The Drive Train.
Episode 21 | The Property Perspective with Etchells & Young
Every landlord wants a tenant who pays on time, looks after the property and stays for the long term. But how do you actually identify that person before handing over the keys?
In Episode 21 of The Property Perspective on 919 FM, Harry looks at what makes a strong tenant, the screening checks landlords should not skip and why the highest rental offer is not always the best application.
In This Episode
Harry explains how landlords can assess rental applications more carefully and why a reliable long-term tenant can be worth considerably more than chasing the highest short-term rental.
Harry discusses:
What makes a good tenant
How affordability is assessed
Rental payment history and credit records
Employment and income stability
Previous landlord references
Why gut feel is not enough
The potential risks of large upfront rental payments
How landlords can retain good tenants
Watch Episode 21
The Property Perspective airs weekly on 919 FM.
What Actually Makes a Good Tenant?
A good tenant is not necessarily the person willing to pay the highest rent.
Harry describes a strong tenant as someone who can comfortably afford the rental, pays reliably, looks after the property and deals with the maintenance responsibilities that fall to them.
Good communication matters too.
Ideally, the tenant should also want to remain in the property for a reasonable period rather than moving again after only a few months.
Can the Tenant Actually Afford the Property?
Affordability is one of the first things Etchells & Young looks at when assessing a rental application.
Harry explains that a common rule of thumb is to assess whether the monthly rental is approximately one-third or less of the applicant's income.
This is not a rigid rule in every case, but it provides a useful starting point for understanding whether the tenant can comfortably carry the rental rather than scraping through every month.
Bank statements and the applicant's overall financial position can then provide further context.
Look at How the Applicant Has Paid in the Past
Past payment behaviour can provide useful insight into how an applicant may behave during the new lease.
Harry discusses checking both previous rental payments and the applicant's wider credit history.
If someone has repeatedly failed to meet other financial commitments, that can indicate additional risk when assessing whether they are likely to pay their rent consistently.
Where rental payment information is available through a tenant credit bureau, landlords and agents can also look at whether previous rentals were paid in full and on time.
Employment Stability Matters Too
Income alone does not tell the complete story.
Harry recommends looking at whether the applicant's income and employment appear stable.
Someone who has held steady employment and receives consistent income may represent a different risk profile from an applicant whose income changes significantly from month to month.
The purpose is not simply to approve or reject someone based on one number, but to understand the sustainability of the tenancy.
Speak to the Previous Landlord
Previous rental references can help complete the picture.
Harry suggests asking why the tenant is leaving, whether they paid reliably, how they looked after the property and whether they reported maintenance appropriately.
But references should not be viewed in isolation.
As Harry points out, a landlord who is desperate to get rid of a difficult tenant may be very motivated to give that person a glowing reference.
Gut Feel Is Useful - But It Is Not Screening
Meeting an applicant and getting a good impression of them certainly has value.
An experienced agent can learn a lot from how someone communicates and conducts themselves during a viewing.
But Harry warns against stopping there.
A friendly applicant who makes a strong first impression should still go through the same affordability, credit, employment and reference checks as anyone else.
Screen, don't guess.
A Little Extra Vacancy Can Be Better Than a Bad Tenant
Landlords naturally want a vacant property occupied as quickly as possible.
But rushing the screening process simply to get someone into the property can become extremely expensive if the tenant later defaults.
Harry's view is that waiting slightly longer for a properly screened applicant can be far less costly than trying to deal with a problem tenant once they are already in occupation.
The Highest Rental Is Not Always the Best Offer
Harry compares two hypothetical applicants: one offering a slightly higher monthly rental and another offering a little less.
Over a full year, the difference may amount to only a few thousand rand.
One vacant month, property damage or a prolonged dispute can wipe out that extra income very quickly.
This is why tenant quality and sustainability should be weighed against the rental amount rather than automatically accepting the highest offer.
Be Careful With Large Upfront Rental Payments
An applicant offering six months' rent upfront can sound extremely attractive.
And in many cases there may be a perfectly legitimate reason for the arrangement.
But Harry cautions landlords not to allow a large upfront payment to replace the normal screening process.
The important question is why the applicant wants or needs to pay upfront.
Affordability, references and background checks should still be completed, because the real test may only arrive when that upfront period ends and the tenant needs to start making normal monthly payments.
A Long-Term Tenant Has Real Value
Tenant retention can be easy to underestimate.
Every time a good tenant leaves, the landlord may face vacancy, advertising, new screening, inspections, cleaning and maintenance before the next tenant moves in.
A reliable tenant who remains in the property for several years can therefore be considerably more valuable than someone who pays a slightly higher rental but leaves after a short period.
Good Tenants Have Choices Too
Finding a strong tenant is only half the job.
The landlord then needs to give that tenant a reason to stay.
Harry points to a well-maintained property, fair rental, clear communication, prompt attention to genuine maintenance issues and respect for the tenant's privacy.
If a landlord wants a five-star tenant, they should aim to provide a five-star landlord experience too.
Once You Find a Good Tenant, Don't Take Them for Granted
A tenant who pays reliably and looks after the property is worth retaining.
Respond to reasonable maintenance requests, communicate properly and keep annual rental increases realistic and market-related.
Renewal discussions should be approached as a conversation rather than simply pushing for the maximum possible increase.
Sometimes keeping the right tenant at a slightly lower rental can make far more financial sense than testing the market again.
A Tenant Who Reports Maintenance May Be Protecting Your Investment
Landlords sometimes become frustrated when tenants report small maintenance issues.
But complete silence is not always better.
Harry gives the example of a minor leak that could initially require a simple repair but become a far more expensive problem if it is ignored for months.
The ideal tenant is neither constantly complaining nor saying nothing at all. They communicate when something genuinely needs attention.
A Key Takeaway
Finding the right tenant starts with proper screening.
Assess affordability, payment history, employment stability and rental references rather than relying on gut feel or being distracted by the highest rental offer.
Then think long term.
A successful rental property is not simply one that is occupied. It is one with the right tenant paying a sustainable rental, looking after the property and wanting to stay.
And keeping that tenant requires the landlord to play their part too.
What Is The Property Perspective?
The Property Perspective is Etchells & Young's weekly property segment on 919 FM.
Each episode explores a different aspect of property - from rentals and property management to buying, selling, legislation, sectional title living and the everyday questions property owners and tenants face.
Follow the series as we unpack more of the issues that matter to Johannesburg property owners, buyers, sellers, landlords and tenants.
Looking for the Right Tenant?
Good tenant placement starts long before the lease is signed.
Etchells & Young handles property marketing, enquiries, viewings, affordability checks, tenant screening, rental references, lease administration and entry inspections for landlords across Johannesburg's northern suburbs.
Speak to our rental team about finding and placing the right tenant for your investment property.
