Tenancy databases checks are the most important part of tenant reference checks.
Despite attempts by some to water down the effectiveness of tenancy databases in recent years, they are even more important now than they have ever been and (thank god) are not going anywhere. In fact, we and top real estate agencies are increasing our database and history reference checks.
I'm not even just talking about tenants that have been blacklisted, I'm talking about enquiry history. Even with a tenant not blacklisted they may still not be the right fit for your property.
If they move every 6 - 12 months they could possibly not be the best tenant for you, the best tenant is a long-term tenant that will pay rent on time and look after your property.
If they say they rented privately but you can see several tenancy database checks red flag and further enquiries may be required. You never know, they may have been looking at renting through an agent but were never accepted so were stuck with private owners, or they could have been fibbing and are being kicked out of their current real estate rental because they didn't pay their rent and/or were trashing the property. You don't know, but thanks to these databases we can find out. A fib on an application form is always a red flag and calls for further checks.
We use the following tenancy databases:
Using as many tenancy databases as possible is essential in our agency. Why? Because not every agency uses a single database and we want history from all of them.
Consider Mr Bad Tenant rents through ABC Realty and trashes a property leaving thousands in repairs and lost rent. ABC uses XYZ database only because it came with their agency pack from a particular institute or organisation and they never researched other ways of doing things including tenancy databases. ABC lists Mr Bad Tenant on XYZ database. Now we receive an application from Mr Bad Tenant but we use 123 and 456 databases but didn't go with XYZ. We could potentially lease your property to Mr Bad Tenant because we never knew about the lodgement on XYZ database and Mr Bad Tenant fibbed and had his friend pretend to be the private landlord Mr Bad Tenant rented from.
When it comes to your investment property there are no cheap shortcuts we will take.
We also recommend Police Checks for tenants with no real estate rental history.