Before you start collecting information about prospective tenants, make sure you know your responsibilities under the Privacy Act 2020. This Act sets out the rules on what personal information people or agencies can collect and how to store, use, disclose and give people access to their personal information.

You should only ask for the minimum amount of personal information you need to help you decide who to rent the property to.

Rental guidance for landlords(external link) — Office of the Privacy Commissioner

Rental guidance for tenants(external link) — Office of the Privacy Commissioner

By asking the right questions from prospective tenants, you can make more informed decisions about if they are suitable for your rental. If you decide they are not suitable you can look for a different tenant.

You do not have to tell a prospective tenant why you are not going to rent the property to them, but they may appreciate any feedback you can provide. You cannot decide who to rent to or whether to continue a tenancy, if your reasons breach the Human Rights Act 1993. For example, you cannot turn down a potential tenant because of their ethnicity.

Discrimination

Be methodical

A casual chat with a potential tenant may give you a feel for how suitable they are. While this is important, you should be methodical when selecting tenants. Your landlord insurance policy may need you to show how you selected your tenants when you make a claim.

Be careful in any discussions leading up to an agreement. Even if you have not signed an agreement, the following situations may be binding:

• if you tell a tenant they can have a property
• if the tenant says they will take the property
• if any money is paid.

Here are some tips on finding the best tenants for your property:

Ask them to complete a pre-tenancy application form

A pre-tenancy application form gathers important information about potential tenants. This can help you decide if a tenant is right for the tenancy.

Pre-tenancy applications

Interview them

You can start interviewing tenants while they fill out the pre-tenancy application form. Ask them if the property suits their needs and if they are interested in living there. Let them know your expectations and answer any questions they have. For example, how much the bond is and when rent should be paid.

You might want to talk about:

• whether the property will suit them
• the last 2 places they rented and why they moved
• whether they have been involved in any tenancy disputes
• their circumstances and ability to pay the rent
• how many people will live in the house
• whether they have pets
• what sort of tenancy you both prefer (fixed-term or periodic)
• if they are familiar with their responsibilities as a tenant. For example paying rent on time, telling you about maintenance or repairs, and keeping the place reasonably clean and tidy.

Let them know if you have specific terms you want to add into the tenancy agreement. For example no pets, or who is responsible for mowing the lawns. Ask if they have any worries about meeting those terms.

Once you have all the information you need, ask for their consent to conduct a credit check. If they have completed a pre-tenancy application form, they will give their consent here. Then tell them you will contact them soon to let them know if they have been selected.

Check their references

Potential tenants provide details of 2 referees on the pre-tenancy application form. These may be a friend, a co-worker, their employer or anyone else who knows them well. It is useful if 1 referee is the tenant’s current or previous landlord.

Ask the tenant to let the referees know you will contact them. If you cannot reach 1 or both of the referees, you can ask the tenant to provide the details of a different referee.

What to ask a referee

Ask questions to get an idea of the potential tenant’s behaviour. If the referee is a previous landlord, you could ask if the tenant:

• let them know when maintenance or repairs needed doing
• returned calls promptly
• kept the place reasonably clean and tidy
• was ever overdue with the rent, and what they did about it.

If you think a referee’s not being completely honest with you, you may wish to speak to another referee.

Check their credit history

Potential tenants give their consent for you to check their credit history on the pre-tenancy application form.

Pre-tenancy applications has more about credit checks.

Check if they have been to the Tenancy Tribunal

You might want to ask if the people who want to rent your house have been to the Tenancy Tribunal before.

You might want to talk about:

• why they went to the Tenancy Tribunal
• if they were the applicant or had an application made against them.

Do not skip important steps

Do not skip reference or credit checks because a tenant offers extra rent upfront. Never accept the tenant's application to rent the property until you have done all your checks and fulfilled all legal requirements.

Be aware that you cannot discriminate

Discrimination has detailed information about discrimination in relation to renting.

Financial assistance for your tenants

There may be financial assistance available to help your tenants at your property. This includes costs to help them move in, while they rent your property and if there are  costs at the end of the tenancy. Tenants do not need to be on the benefit to receive this help however there is criteria that must be met.

Private owners and landlords – Work and Income New Zealand(external link)