Changes to the Rental Application Form and Process:
Changes to the Application Form and Process:
Following the release of Regulations by the Minister, there will be a new prescribed tenancy application form distributed by the Residential Tenancy Authority (RTA) to use from May 1. This form will have a prescribed list of questions.
Information and Documents that can be requested from a prospective tenant/resident:
• name and contact details
• current employment information
• income details
• referee’s information
• intended term of tenancy
• details of previous residential tenancy agreements or rooming accommodation agreements relating to the prospective tenant/resident, and
• any other information prescribed by regulation.
No more than two documents can be requested in each of the following categories:
• verifying the identity of the prospective tenant/resident
• confirming the prospective tenants/residents’ financial ability to pay rent
• the suitability of the prospective tenant/resident for the residential tenancy
Information that cannot be requested from a prospective tenant/resident during the application process
• evidence of legal actions taken by the prospective tenant/resident, including disputes or matters considered by a tribunal
• any Notice to remedy breach (Form 11)) either issued to or by the prospective tenant/resident
• the prospective tenants/residents’ history regarding rental bonds, including any claims made
• any statements that detail a potential tenants/residents’ credit or bank account transaction history.
Limits on a property manager/owner verifying a prospective tenants/residents’ identity:
A prospective tenants/residents’ identity can be verified by either:
• providing a copy of their original identity document to a property manager/owner
• allowing a property manager/owner to sight the original document.
If a property manager/owner views the original identity document, they cannot keep a copy of it unless the prospective tenant/resident agrees.
My concerns:
The above means we can’t ask critical questions about the applicants previous rental history including for example notices for rent arrears, rent payment ledgers, bond claims/disputes and QCAT disputes, or simply the number of dependents or pets they have.
We will be restricted to keeping a copy of a tenants identification only if they give us consent to do so. We are giving keys out to a property worth 100’s of 1000’s of dollars and we can’t kept a drivers license copy?
The current limits of information even potentially prevent us from accessing the tenancy databases designed to protect investors from tenants who will place their properties at a very high risk of tenant default on rent and care of the property.
This has implications on landlord insurance claims also as we may not be able to provide all the documents that they require to process a claim.
This is going to result in the relationship between property managers (therefore owners) and the tenants being much more adversarial and resulting in more conflict as we potentially will have unsuitable applicants accepted for rental property. This will translate into more QCAT claims and a general increase in stress and conflict for all involved. Whilst this is the time that our experience will really show it’s value, not being able to assess very vital information will make it difficult to ensure the most suitable applicant is chosen.
This will further erode investor confidence who will also be effected by the property management industry’s ability to recruit and retain quality property management staff in light of these changes. This combines to hurt the very people these laws are designed to protect – the tenants. The overwhelming majority of tenants are great people and they should be celebrated but there are some who have done the wrong thing and our clients should be protected from those.
One thing that won’t change – the determination of all of us here at McAdam and Turnbull Realty to provide the very best of service to our clients and ensure the generally good relationships we have with our tenants will continue. We’ve adapted to law changes before and will do so again.
Please continue to check back on this news site for updates as our attempts to lobby the Housing Minister for changes continue and the actual Form is released.