Most landlords play safe when it comes to selecting tenants. And fair enough, one wrong tenant can cause you significantly mainly due to unpaid rent and property damage.
But we’ve also witnessed landlords dismiss great applicants over what seemed like a red flag, that actually wasn’t.
Knowing how to spot real risk (and when to dig deeper) is key to protecting your investment without scaring off good tenants.
Here’s how we read between the lines, and what rental application red flags actually mean.
What’s Considered a Red Flag?
There are a few things that commonly make landlords hesitate:
- Gaps in rental history
- Frequent address changes
- Self-employment or inconsistent income
- Lack of formal references
- Rushing to move in
- Low credit score or poor documentation
These aren’t things to ignore. But they don’t always mean “no”.
The key is context, not just the checklist.
What These Red Flags Could Actually Mean
Before you reject an application, consider this:
Gaps in rental history
They may have been living at home, travelling, or even owning a property before deciding to rent again.
Frequent moves
Could be due to short-term leases, career shifts, or share housing, not necessarily a sign of instability.
Self-employed or casual income
This one scares a lot of landlords, but it shouldn’t. With an ABN, tax returns or bank statements, you can still verify income and financial reliability.
No formal references
First-time renters or those coming from overseas may not have past landlords to list. An employer or personal reference (with verification) can be just as valuable.
Rushing to move in
This could be a sign of urgency, but not always for negative reasons. Job relocations, relationship changes or lease overlaps can all trigger a quick move.
The Risk of Overlooking Good Tenants
Landlords get strict with red flags, hold out for the “perfect” tenant… and the property sits vacant for weeks.
Vacancy costs money. But so does tenant turnover.
The right applicant might have one or two quirks on paper, but still be a respectful, long-term tenant who pays on time and is actually responsible enough to take care of your property.
Tip: Trust your gut, but always back it up with real checks. Instinct without due diligence is just guesswork.
What to Prioritise Instead
There’s a difference between someone who’s not ideal on paper and someone who’s a genuine risk.
Here’s what we weigh heavily at Mclaws:
- Rental payment history: Nothing beats proof they’ve paid rent on time.
- Behavioural references: How they treated past properties, how they communicated with agents.
- Income stability: We do not limit our choices to a prospective tenant’s job designation, but also whether their income supports the rent.
- Transparency: If they’re honest about their situation, that’s a good sign they’ll be honest as tenants too.
How Mclaws Property Screens Tenants (Fairly and Thoroughly)
We don’t just comply with whatever is in the tenant selection checkbox. We screen our tenants thoroughly.
Our screening includes:
- Employment and income verification
- Rental history and reference checks
- National tenancy database search
- Personal interviews to get a real feel for the applicant
And because we manage properties across various suburbs, we know what to look for, and the important things to really consider in selecting the right tenants.
Don’t Let the Wrong Red Flag Cost You the Right Tenant
Picking the wrong tenant can be an expensive affair down the line. But being too quick to reject applications comes at a significant cost too.
If you are not certain how to screen tenants or need help weighing up an application, we are here to help you.
Contact Mclaws Property for professional and comprehensive tenant selection advice, based on our real experience and expert analysis.