The Hidden Cost of Poor Renter Screening

With recent rental reforms in Victoria strengthening protections for prospective renters during the application process, selecting the right applicant has never been more

What Changed on 31 March 2026

Victoria's new application rules changed how information is collected, not what a good decision rests on. In brief: 

• All applications must use the government's prescribed standard form, agents can no longer use their own forms or ask questions outside it.

• Information collected is limited to what's needed to confirm identity, capacity to pay the advertised rent, and rental history and references.

• Questions about dependants, pets and vehicles are off-limits at application stage (pets are dealt with after approval through the formal pet request process).

• Employers can't be contacted directly unless the applicant nominates them as a reference, income is instead verified through documents such as payslips, employment contracts and bank statements.

• Reference checks are limited to current and previous rental providers or agents, plus up to two references the applicant supplies. Follow-up questionnaires and informal background checks are no longer permitted. 

What hasn't changed: you still choose the renter, and the decision still rests on identity, affordability and rental history. And with employment checks now restricted, an applicant's rental history and previous rental provider references carry more weight than ever, as they're the clearest available signal of how a renter pays and cares for a property.

The Real Cost of Poor Screening

The cost of choosing the wrong renter extends well beyond unpaid rent.

If a renter falls into arrears, Victoria's prescribed notice periods and VCAT process can take considerable time, with rent continuing to accumulate along the way. As bonds are generally capped at one month's rent, they often don't cover the full amount of unpaid rent and any property damage, leaving rental providers out of pocket.

There's also the cost of vacancy. Rushing to lease a property to avoid an extra week or two on the market can end up being far more expensive if the tenancy breaks down early. The property then needs to be repaired, re-advertised and leased again, creating a second vacancy period and letting costs that could have been avoided.

Property damage is another hidden cost and one a capped bond rarely covers in full.

Finally, there's the time and stress involved. Managing arrears, issuing notices, preparing VCAT applications and coordinating repairs all consume valuable time and can become a significant burden.

Why Professional Screening Matters

Effective screening is about much more than checking whether an applicant can afford the rent. It involves verifying identity, affordability, rental history and references while remaining fully compliant with Victoria's tenancy, privacy and equal opportunity legislation. The goal is simple, an applicant with a proven history of paying on time and caring for the properties they live in.

While thorough screening significantly reduces risk, no process can completely eliminate the unexpected. This is why having comprehensive landlord insurance remains an essential part of protecting your investment. The right policy can provide additional protection for events such as rental arrears, malicious damage or unexpected tenancy-related costs, providing another important layer of security.

How LongView Helps

At LongView, application processing is handled by a dedicated Applications Processing Team, allowing every application to be assessed thoroughly, consistently and with fast turnaround times

Our process is fully aligned with the new rules: we use the prescribed form, verify income through approved documents, and make full use of what the rules still allow — above all, thorough checks with previous rental providers.

Quality applicants are often applying for multiple properties at once, and slow processing means losing them to another property.

By combining specialist application processing with experienced property managers, LongView helps minimise risk, reduce vacancy and secure high-quality renters faster, giving our clients greater confidence that their investment is in good hands.