The number of applications received for a property is determined by several factors such as supply and demand, current market conditions, property presentation, inclusions, and the rent.
It doesn’t matter if you receive two or 20 applications because there is a success formula for choosing the best tenant by applying the ‘shortlist process.’
Following are our top six shortlisting focus points when processing multiple applications.
Firstly, we will review the below to rank each application:
- Ability to pay rent – Collectively amongst all tenants, how much income is generated? There is a general 70/30 rule applied where 30% of the income is allocated to rent. E.g. $1000 income could afford to pay up to $300pw.
- Stability of employment – Generally, the greater number of years served to an employer will demonstrate more stability. E.g. Ten years compared with several short-term six-month jobs.
- Stability of tenancy – Depending on circumstances, a tenant with prior tenancies of eight years and six years could be considered more long-term than several six-month tenancies.
- Number of tenants – An increased number of tenants can have an impact on the wear and tear of the property.
- Prior tenancy default records
- Tenant references