4 Factors that Impact your Attractiveness as a Tenant

Knowing and Communicating Rental Requirements

Tenants should be proactive in knowing and clearly communicating their rental requirements, including preferences for size, location, property type, proximity to major travel nodes, level of security, and pet policy, before applying for a property. Tenants who are responsive and communicate effectively are more likely to stand out among other applicants. If the prospective tenant found the property online, the listing description and features should be scrutinised before contacting the landlord or agent to view the property. This approach saves valuable time for both the tenant and the landlord/representative agent, as the focus of viewings is directed towards showing properties that match the tenant's specific needs. Additionally, by being aware of their requirements, tenants can quickly identify any deal-breakers in a rental property. This helps tenants avoid potential issues after the lease process begins and prevents unnecessary delays to the rental process or disputes with the landlord during the tenancy.

Moreover, understanding their own rental property requirements enables tenants to prepare and present themselves as suitable candidates during the application process. Meeting the landlord's expectations significantly increases the likelihood of being selected as a tenant and lays a strong foundation for a positive landlord-tenant relationship.

Credit Score

A tenant’s affordability is a top concern for landlords and property management companies because the tenant’s ability to pay their rent in full and on time directly impacts the security of the landlord’s investment. The general rule of thumb when assessing a tenant’s ability to afford a rental property is that he/she earns an income at least 3 times the monthly rental. This ensures the tenant is able to comfortably afford the monthly rental and still meet other financial obligations, and mitigates the risk, insofar as possible, of partial/non-payment due to affordability issues.

But income alone cannot provide landlords a full and complete picture of a prospective tenant’s financial position. This is where a tenant’s credit score comes into play. The credit score consolidates how a tenant manages financial obligations (past and present) and rates them accordingly. In other words, it is a numerical representation of a tenant’s creditworthiness. The credit score takes the following into account:

the tenant’s payment history (whether or not they consistently pay their financial/debt obligations on time and in full);

the tenant’s debt utilisation (the amount of credit the tenant uses when compared to the total amount available to them);

the tenant’s credit history length (the longer the tenant has successfully managed credit accounts, the better their overall score);

the tenant’s credit mix (the more diverse the types of credit accounts, the healthier the credit score). Credit Provider Association accounts (cellphone contracts, vehicle finance, insurance policies etc.) are seen as ‘good debt’, whereas National Loan Register accounts (short term loans from microlenders) as not viewed as favourably;

and rising/recent credit activity (a tenant’s credit score will be adversely affected by the tenant opening multiple accounts in a short space of time).  

Landlords want tenants who display responsible financial behaviour and pose the lowest risk of defaulting to ensure the safety and longevity of their property investment.

Payment Performance

Tenants with a positive payment history are far more attractive to landlords than the alternative. One of the first tenant screening checks a landlord/reputable property management company acquires is a reference from the rental applicant’s previous/current landlord. This is a crucial indicator of rental payment performance.

Attractive rental applicants prioritise prompt rental payment, and ensure the full rental amount is paid. Quality, paying tenants are a valuable asset, and landlords are more open to negotiating a lower rental increase at the end of the lease term with a tenant who has consistently paid their rent on time and in full. As Michelle Dickens, founder and former CEO of credit bureau TPN, states; "The essence of an investment in real estate is a good tenant.”

Additionally, late and non-payment have a direct impact on a tenant’s credit profile, and this information remains visible and available to property management companies that utilise credit bureau software to vet tenants for rental properties – adversely affecting the tenant’s chance of finding a suitable rental home going forward. It is in the tenant’s best interests to prioritise his/her rental obligations and consistently pay the rent in full and on time.

A reliable reference from a previous landlord not only confirms whether the tenant consistently paid rent on time but also offers insights into the overall quality of the tenant's rental behaviour and their conduct as a responsible renter.

Reliable References

A positive reference may reveal how well the tenant treated the property during the lease term, whether he/she reported maintenance issues promptly, offers insights into the tenant's relationship with previous landlords, and indicates lease compliance and adherence to property rules. Landlords value tenants who demonstrate qualities such as respect, responsibility, accountability, communication, and cooperation during previous tenancies because they serve as strong indicators of how well the tenant will care for their own property, handle maintenance, maintain positive relationships, and adhere to the lease agreement.

A powerful reference from a previous landlord can significantly influence a landlord's decision to accept a tenant. Positive feedback not only reaffirms the tenant's ability to make timely rental payments but also provides valuable context regarding their overall rental conduct, property care, and communication skills. Armed with this information, landlords can make informed choices during the tenant selection process, leading to more successful and mutually beneficial rental relationships. Emphasising qualities and factors that align with a landlord’s preferences significantly increase a prospective tenant’s chances of standing out among other applicants, will is particularly important in a competitive rental market.

In summary, certain factors impact the attractiveness of a rental applicant, and understanding and adopting these qualities/practices may strengthen a prospective tenant’s chances of having their application approved. By communicating rental requirements, being proactive about preferences to streamline the process, demonstrating responsible financial behaviour, and providing powerful, reliable references, tenants can present themselves as suitable and attractive candidates and foster successful landlord-tenant relationships.