From the clothes you wear to the dirt your car is in, real estate agents pay more attention to you than you think when inspecting a rental property.
But this has not always been the case, experts say the rental crisis has led to a change of approach on the part of many agents.
NSW Central Coast owner James, who asked to retain his last name, told 7NEWS.com.au that he was surprised at the amount of details his real estate agent provided about each potential tenant when he rented. their property.
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James said the agent gave him a long list of notes, including recommendations on who to choose to live with.
He said the details provided included standard reference checks, such as employment and income and rental history, but also agents’ impressions of the potential tenant on the opening day, including how they were presented and whether they were well dressed or not.
The archive image of an open house inspection as a real estate agent shows a new home to a young couple. Credit: Getty Images
“I was amazed at how many details were provided,” James said.
“Even though I didn’t know them personally, the app gave me a great insight into who they were as tenants.
“Because of this exhaustive process, I felt more comfortable choosing a tenant.”
While this level of detail may seem like a common practice for property managers and agents, Tenants ’Union of NSW general manager Leo Patterson Ross told 7NEWS.com.au that this has not always been the case.
“There is no doubt that it is becoming stricter and a harder process,” he said.
“The introduction of questions as if the tenant has been in court seems to be about 10 years old, but some more recent changes have been some agencies that have started asking about social media profiles.”
Patterson Ross added that tenant selection processes do not appear to be regulated, so “new rules appear without necessarily any oversight of whether they are proportionate or even useful.”
What they write down
- If they have children or pets
- Your income
- Rental history
- How they were presented
- Both smoke
- Other personal data, such as whether they are experiencing personal difficulties; in one case, a woman’s recent miscarriage was noted.
What red flags were there?
James said he considered some of the details the agents provided about the rental applicants to be “red flag.”
“Finding out they are unemployed is a concern, because you want a tenant who has a stable income; you know the tenant will be paid on time and there will be no problem later,” he said.
He added that unfortunately pets and children were other red flags.
“I have carpets all over my unit, so it was something I was careful about,” he said.
Tenants have been struggling to find a home amid an ongoing rental crisis across the country. Credit: AAP
“During the application process, I also looked for some potential tenants on social media to see how they presented themselves.
“I found an applicant on Facebook and there were photos of them smoking: this is another red flag.
“It really helps you decide when you’re trying to choose someone to live with.”
First impressions are everything
James said he is looking for tenants who hope to be on the property for the long term and not cause him any problems or more work for his agent.
“First impressions are always important because you want someone who is sensitive and responsible to live in your home,” he said.
“My priority as a landlord is to find a long – term, reliable tenant who treats my property as their own.
“After all, it’s also in the best interest of real estate to choose tenants that won’t cause them more work.”
‘Competitive process for an essential service’
Patterson Ross said the competitive nature of the rental sector means potential tenants are facing a number of problems.
“The basic challenge for people trying to find housing in the rental sector is that it is a competitive process for an essential service,” he said.
“We don’t make people compete for energy, water and other essential services; we make sure everyone in the community has access to these basic standards for healthy living.
“However, renting out your ability to find a home is limited, and right now people are facing more competition for the few affordable, good-quality homes available.”
Patterson Ross said real estate agents are “mostly evaluating applicants for their risk profile” and, as competition grows, they classify suitability in other ways.
“This process is not transparent and, instead of assessing each application on its own merit, all applications are evaluated in groups,” he said.
“People are being asked to do things like social media profiles and other irrelevant information to remove the list.”
Tenants themselves have also expressed concern about the amount of personal information they have about them, says Patterson Ross.
“As people are increasingly desperate to find a home for themselves and their family, the consent given for these uses may not be genuine informed consent, but is given out of desperation,” he said.
The rental crisis is taking hold
Many report having to visit numerous open days and fill out various applications before being able to insure a property.
A young father in Adelaide told 7NEWS he has applied for more than 360 properties in recent months, all without success.
Believe Housing Australia CEO Michelle Gegenhuber told 7NEWS that there are currently more people on the brink of homelessness than pre-pandemic levels.
“What we are seeing post-COVID is a new wave of homelessness,” he said.
“People who have never before touched the homeless system are now facing it because of the cost of living.”
In Sydney, according to the latest data from the domain, the rental vacancy rate plunged to an all-time low of 1.4 per cent in May.