Landlord Guides

Choosing the right tenant for your rental property

How rental applications are assessed in NSW: what checks are done, how to compare applicants fairly, and the rules that apply to the process.

OTTO Agency team · Updated 2026-10-29

What a good application shows

A strong application shows that the applicant can afford the rent, has looked after previous rental properties and is a good fit for the home. Your team will verify identity, income and rental history before recommending an applicant.

References from previous landlords or agents are often the most useful part of an application, because they show how the applicant has actually behaved as a tenant.

  • Proof of identity and income.
  • Rental history and references from previous landlords or agents.
  • A check of tenancy databases where appropriate.

Comparing applicants fairly

Applications should be compared on relevant factors, such as ability to pay, rental history and the proposed move-in date. It is unlawful to refuse an applicant on discriminatory grounds, such as race, sex, disability or family responsibilities.

Your team will present a recommendation with the reasons, and you make the final decision.

  • Compare applicants on the same criteria.
  • Base decisions on relevant information only.
  • Record the reasons for the decision.

Rules on the application process

NSW has rules on how the application process works, including limits on the information that can be requested and on inviting offers above the advertised rent. Your team will make sure the process and forms follow the current rules.

Applicants’ personal information must be handled securely and only used for assessing the application.

  • Only ask for information the rules allow.
  • Advertise a fixed rent rather than inviting higher offers.
  • Keep applicants’ personal information secure.

After you approve

Once an applicant is approved, your team will prepare the tenancy agreement, collect the bond and first payment of rent, lodge the bond and complete the ingoing condition report before the tenant moves in.

A clear start, with the condition report, keys and instructions all in order, sets up the tenancy well.

  • Sign the agreement before keys are handed over.
  • Make sure the bond is lodged.
  • Complete the ingoing condition report with photos.

Let’s talk about your property.

Discuss your plans and the next steps with our team.

Choosing the right tenant for your rental property | OTTO Agency