How to Screen Tenants Properly Without Paying Expensive Agency Fees
Finding the right tenant can make the difference between a stress-free lease and months of frustration. Many landlords in South Africa think the only way to secure a reliable tenant is to hand the process over to an estate agent.
While agents do offer convenience, they charge steep fees that eat into rental income. The good news is that landlords can learn how to screen tenants properly without paying expensive agency fees, saving money while still protecting their property.
In this guide, we explain practical steps every landlord can take to conduct thorough tenant screening.
By following these methods, you can reduce the risks of late payments, property damage, or disputes, all while keeping costs under control.
Why Tenant Screening Matters
Tenant screening is about far more than simply checking if someone can afford the rent. It is about assessing whether they are likely to respect the lease agreement, maintain the property, and contribute to a stable landlord–tenant relationship.
Poor screening increases the chances of late rent, property neglect, or costly eviction processes.
Knowing how to screen tenants properly without paying expensive agency fees empowers landlords to make informed choices.
It also ensures compliance with South African laws such as the Rental Housing Act and the Consumer Protection Act, which protect both landlords and tenants.
The High Cost of Letting Agents
Many agents charge a once-off placement fee that can be as high as one month’s rent. On top of that, some agents add monthly management fees, usually between 8% and 12% of the rental income.
For landlords with a single property, these costs can drastically reduce profits.
Learning how to screen tenants properly without paying expensive agency fees puts control back in the landlord’s hands.
By investing time and using affordable tools, you can achieve the same results agents promise without sacrificing your income.
Step 1: Create a Clear Rental Application Form
A well-designed rental application form is the first step in the screening process. It should request essential information such as:
- Full name and ID number
- Current and previous addresses
- Employment details (employer, position, salary)
- Contact details for references (previous landlords, employers)
- Number of occupants
- Consent to run a credit and background check
This form sets the foundation for how to screen tenants properly without paying expensive agency fees. It gives you a structured way to gather and compare applications objectively.
Step 2: Verify Employment and Income
A stable income is the strongest indicator that a tenant can pay rent reliably. Landlords should request:
- Recent payslips (at least three months)
- Bank statements showing salary deposits
- A letter from the employer confirming employment and income
As a rule of thumb, tenants should earn at least three times the monthly rent.
Verifying income directly ensures you are not relying on unverifiable claims, which is crucial when learning how to screen tenants properly without paying expensive agency fees.
Step 3: Run a Credit Check
Credit checks are one of the most powerful tools available to landlords. They reveal whether a prospective tenant has a history of late payments, judgments, or defaults.
Several affordable credit bureaus in South Africa, such as TPN, Experian, or TransUnion, allow private landlords to run tenant checks at a fraction of the cost charged by agents.
This is a cornerstone of how to screen tenants properly without paying expensive agency fees, as it provides concrete evidence of financial responsibility.
Step 4: Contact Previous Landlords
Past behaviour is often the best predictor of future behaviour. Contacting previous landlords can reveal how tenants treated their rental homes and whether they paid on time. Ask questions such as:
- Did the tenant pay rent promptly?
- Was the property well-maintained?
- Were there any disputes or complaints?
- Would you rent to this tenant again?
Taking this step ensures you are not relying only on financial data. It adds a human perspective to how to screen tenants properly without paying expensive agency fees.
Step 5: Interview the Tenant in Person
Meeting the tenant in person (or virtually if necessary) is an essential part of the process. It allows you to gauge professionalism, communication style, and overall suitability.
During the interview, explain the house rules, lease terms, and expectations. Observe whether the tenant is respectful and transparent about their obligations.
This step also allows you to identify red flags such as reluctance to provide documents, vague employment details, or unwillingness to answer straightforward questions.
When mastering how to screen tenants properly without paying expensive agency fees, trust your instincts in these conversations.
Step 6: Conduct a Background Check
Beyond finances, landlords should check for any criminal records where legally permissible. This helps ensure the safety of the property and neighbouring tenants.
Affordable online services in South Africa provide access to basic criminal record checks with tenant consent.
Adding this step strengthens your ability to screen tenants properly without paying expensive agency fees with minimal risk.
Step 7: Evaluate Lifestyle Fit
Some issues only arise after a tenant has moved in, but careful questioning can help landlords avoid mismatches.
For example, asking about pets, smoking habits, or the number of people who will occupy the property ensures alignment with your lease terms.
Lifestyle compatibility is a practical aspect of how to screen tenants properly without paying expensive agency fees, and it helps avoid potential disputes later.
Step 8: Secure a Deposit
Even after thorough screening, landlords need protection against unforeseen risks. South African law allows landlords to take a deposit (usually one to two months’ rent) to cover potential damages or arrears.
Ensure this deposit is managed correctly and placed in an interest-bearing account, as required by the Rental Housing Act.
This final safeguard completes the process of how to screen tenants properly without paying expensive agency fees.
Common Mistakes to Avoid
When landlords try to handle tenant screening themselves, they sometimes make avoidable mistakes, such as:
- Accepting the first applicant without comparison
- Failing to verify documents independently
- Overlooking previous landlord references
- Ignoring legal requirements under the Rental Housing Act
By avoiding these pitfalls, you will master how to screen tenants properly without paying expensive agency fees while ensuring your rental investment is well-protected.
Benefits of DIY Tenant Screening
Learning how to screen tenants properly without paying expensive agency fees comes with significant benefits:
- Cost savings: You keep more rental income.
- Control: You make the final decision rather than relying on an agent’s judgment.
- Faster process: You can vet tenants quickly without waiting on an agency’s schedule.
- Better landlord–tenant relationship: Starting direct communication early fosters trust.
FAQs
Do I need the tenant’s consent for a credit check?
Yes. South African privacy laws require written consent before pulling a credit report.
How much should I charge as a deposit?
One to two months’ rent is standard, but landlords should always place deposits in an interest-bearing account as required by law.
What if a tenant has a poor credit record but good references?
Landlords can consider additional security, such as a larger deposit or a guarantor. Always weigh risks carefully.
Can I reject a tenant based on lifestyle choices?
Yes, provided these choices directly impact the lease terms (e.g., pets in a no-pet property). However, rejection must not breach anti-discrimination laws.
Is it still worth using an agent for tenant screening?
For landlords with multiple properties or limited time, an agent can offer convenience. But if saving money is the goal, understanding how to screen tenants properly without paying expensive agency fees is the best approach.
Conclusion
South African landlords do not need to rely on costly agents to find reliable tenants.
By preparing a strong application form, verifying income, running credit and background checks, contacting references, and meeting tenants directly, landlords can safeguard their properties and maximise rental income.
Mastering how to screen tenants properly without paying expensive agency fees gives landlords control, saves money, and reduces risks. With the proper knowledge and tools, you can make confident decisions and secure tenants who will respect both your property and your lease terms.
Don’t go through it alone — South Africa’s landlords stand together.
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For just 2 rand a day, you can access professional advice, proven tools, and a community that understands the challenges of both commercial and residential property management.
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Disclaimer:
This post is for general use only and is not intended to offer legal, tax, or investment advice; it may be out of date, incorrect, or maybe a guest post. You are required to seek legal advice from a solicitor before acting on anything written hereinabove.
