A person’s looks, race and marital status are being used by real-estate agents to weed out “risky” tenants in an increasingly tight rental market, new research has revealed. Rental candidates are required to prove their ability to cover the cost of rent, but the success of their application could also depend on their age, ethnicity or family size, according to the Australian Housing and Urban Research Institute (AHURI).
While a tenant’s ability to pay rent and care for a property were identified as important considerations, the report also found personal characteristics and circumstances were key indicators of risk.
Ethnicity, family size, employment and even the personal appearance of a rental candidate could determine the success of their application.
LJ Hooker New Farm principal Brett Greensill admitted the findings were a sad reality of the current climate, with historically low rental vacancy rates and high demand. “In our office, anything that is vacant is taken up almost immediately and there are always multiple applicants,” Mr Greensill said.
The process for choosing a tenant depended on the agent making the decision, but could include a range of “risk measures”, he said. With a high number of applicants likely to be in the running for a single property, it is up to the agent to employ their best judgement on the most suitable tenant, he said.
The best tenant was often seen as the one who would cause the fewest problems, Mr Greensill said. “From a business perspective, a good tenant means higher profitability for the landlord and the agent – if there are no problems, all parties are happy.
