DO YOU KNOW YOUR LANDLORD

DANA HERIOT

Landlords demand personal references and background checks for tenancy applicants as a norm – but tenants are the ‘consumers’. Why isn’t this quality check a two-way street?

While he approached the query to the agent with humour and a bit of cheek, it has stirred a stubborn response in my head: good question, why not?

THE PROPERTY SURGE

The property market is booming. I am not just talking about the prices in major cities which are now certainly

outside my budget. The new leases motivated by COVID-19 restrictions, flexible work arrangements, and lifestyle shake ups, continue to change how Australians now live their life. With this change has come new conversations, and one of them has caught my eye.

THE DATABASES

The National Tenancy Database states that its tenant check services include identity verification, tenant blacklist screening, bankruptcy & court record check, and ASIC company directorship checks.2 Furthermore, Trading Reference Australia claims to provide the most comprehensive database in Australia with the purpose of discussing and assessing an individuals’ rental history.3

These mature search services are backed by a laundry list of

claims that they have led to improved tenant experiences,

A prospective tenant was forcefully withdrawn from the

application pool after initial approval for requesting a reference for his potential landlord.1 Yes, you read that

correctly. The hopeful applicant wanted a previous tenant to such as: reduced property damage, improved property upkeep, 90% reduction in rent default, and the ability to

OTHER INDUSTRY REFERENCES

It’s not an innovative

concept to equal the playing field with references. Recruiting industry websites

such as Seek, Indeed,

and Glassdoor, ask employees to provide references to their workplace

and rate several aspects of their work life

that future employees may find value in. In my humble opinion, this is exceedingly fair when considering the repetition of the job application process. Since January, the infamous ‘great resignation’ (driven by worker burn out during lockdowns) has employers searching for ways to attract talent.

THE LANDLORD LADDER

I would be comfortable suggesting that the power in a landlord-realtor-tenant situation

sways heavily with the homeowner. While in theory, tenants can alert their landlords

or property managers to issues, some find themselves: blockaded, ignored, at risk of a rent increase, at risk of a lack of renewal for insisting on repairs (emergency or otherwise).

LEVELLING THE FIELD

The potential benefits of an Australian landlord database could bring great Utilitarian effects. The practice of tenancy references claims to improve the behaviour of the wider tenant

population – so the same could be achieved of landlords.

Some may suggest that simply making the ‘request’ mainstream would be enough, however, I am inclined to see legislative change that would afford tenants more protection in their choice of home. After all, knowing the basic character of the person who owns your bedroom seems like the

minimum for peace of mind.

1Prospective tenant’s rental application is rejected after asking for ‘landlord reference’ | 7NEWS

2https://www.tenancydatabase.com.au/Checks for Property Managers | National Tenancy Database

3Trading Reference Australia, https://tradingreference.com/

4Tenant Reference Database - Why it’s so important - Property Management Sydney Australia | Manager

Specialists | Real Estate Agent | Rent Appraisal | Executive Leasing | Rhodes | Burwood :: Rent - Best...

(propertymanager.net.au)

Landlords allegedly have a keen interest in protecting their investment, but sometimes it can feel that investment is the

land itself, not the household or the occupants. Meanwhile,

tenants have an interest in protecting their standard of living by ensuring they report issues promptly and catch issues early that could become expensive to fix, dangerous to reside near, or risk their bond. Not all landlord (or property manager) behaviour is optimal to be on the receiving end of. It would be wise to provide tenants an avenue to conduct their own due diligence on who they propose to pay each week.