As South Africa’s property management landscape becomes increasingly complex, the demand for innovative solutions that can simplify and streamline operations has never been greater.
Preferental, a leader in property management innovation, has responded to this challenge with the introduction of its new tenant screening app. This state-of-the-art application is set to revolutionise tenant screening by offering a faster, more efficient and cost-effective solution that promises to reshape the industry.
Ross Fitzcharles, CEO of Preferental, a leading PropTech company in SA
Ross Fitzcharles, founder and CEO of Preferental, highlights that tenant screening has become more crucial than ever for landlords in the current South African rental market.
He points out that the legal landscape heavily favours tenants, providing them with protection against illegal eviction, whilst ensuring their fair treatment. However, this leaves landlords grappling with the slow and often costly enforcement of their rights, particularly when dealing with tenants who default on rent, but refuse to vacate the property. The situation is further exacerbated by South Africa’s staggering 33.5% unemployment rate, where one in three people struggle to find work. For landlords, this statistic is a ticking time bomb as it significantly increases the risk of encountering tenants who cannot reliably pay rent.
The economic climate further complicates matters. “High interest rates and inflation have made it increasingly difficult for tenants to manage their finances, pushing many to the brink of financial instability,” he comments. “As a result, tenant defaults are becoming a more prevalent threat.
“Currently, 18.3% of tenants are in arrears, with those in default owing an average of 77.5% of one month’s rent. This rising financial strain means that landlords face a real and growing risk of rent defaults, which can lead to prolonged vacancies and the costly process of legal eviction,” cautions Fitzcharles.
Despite these challenges, a surprising 40% of landlords in SA do not conduct any form of tenant vetting, leaving themselves vulnerable to these risks.
“In effect, only six in ten landlords engage in tenant screening, a critical process that helps identify reliable tenants who are more likely to meet their financial obligations and treat the property with respect. Skipping this step can lead to a host of problems, including dealing with tenants who may not only default on rent, but also cause property damage or engage in illegal activities. To maintain a secure and profitable rental business, thorough tenant screening is not just advisable, it is essential.”
Traditionally, tenant screening in SA has involved labour-intensive procedures, which have deterred landlords from conducting thorough tenant screenings. These typically include cumbersome credit checks, background verifications and rental history assessments, often taking up to 24 hours or more – delays that can lead to missed opportunities and increased operational costs.
A depiction of the new Preferental Screenings App.
Fitzcharles says the Preferental Screenings App is specifically designed to automate and expedite the tenant screening process, reducing it to seconds, and making it far less burdensome for landlords. By leveraging cutting-edge artificial intelligence (AI) and machine learning (ML) technologies, the app provides real-time, accurate tenant evaluations, enabling property managers and landlords to make informed decisions quickly and with confidence.
The app is being hailed as a game-changer for the SA property management industry. Here’s how it’s set to transform the landscape:
● Automated screening and reporting: The app performs efficient credit checks, background verifications and rental history assessments, generating comprehensive screening reports.
● Efficiency: It reduces the traditional tenant screening time from 12-24 hours to seconds.
● Accuracy: By utilising advanced AI and ML algorithms, the app delivers highly accurate tenant evaluations. This significantly minimises the risks associated with tenant defaults and property damage, ensuring that only the most reliable tenants are approved.
● User-friendly interface: Its intuitive design, featuring a streamlined dashboard with real-time updates and push notifications, ensures a smooth and engaging user experience. Property managers and landlords can easily navigate the app and stay informed throughout the screening process.
● Comprehensive integration: The app seamlessly integrates with leading financial and background check services, including TPN, TransUnion and Compuscan. This holistic approach ensures that every aspect of tenant screening is covered, providing users with a complete and reliable assessment.
● Document upload and verification: The app supports biometric authentication and allows tenants to upload necessary documents, enhancing security and accuracy.
● Fraud prevention: The app’s real-time bank statement and employment verification checks significantly reduce the likelihood of fraudulent applications, providing landlords with greater peace of mind.
● Automated risk-based deposit recommendations: One of the stand-out features unique to the Preferental Screenings App is its automated risk-based deposit recommendation system, which empowers landlords and agents by suggesting the appropriate deposit amount based on the identified risk from the screening process. The app also offers identity verification directly through the Department of Home Affairs and employment verification with SARS, providing a comprehensive, cost-effective and reliable screening solution that sets the app apart as a market leader.
● Compliance and security: In an era where data protection is paramount, the Preferental Screenings App ensures robust security for both landlords and tenants by adhering to stringent POPIA and GDPR regulations. All users can trust that their data is secure and their privacy is protected.
By shifting the screening cost to tenants, the app alleviates the financial burden on landlords and agents, making the process both cost-effective and time-efficient. Tenants pay a one-time fee of R249 per screening, which includes comprehensive services, such as credit checks, background verifications and rental history assessments. This fee is collected upfront, ensuring full transparency with no hidden costs.
Competitive pricing, coupled with seamless integration with leading financial services and a user-friendly interface, positions the Preferental Screening App as a cost-effective, scalable solution for property managers and landlords, offering excellent value for money and a significant advantage over traditional screening methods.
Fitzcharles, a fervent advocate for innovation in PropTech, says the app will empower landlords to navigate the complexities of the property market with greater ease, leading to more efficient operations, reduced risks and peace of mind, while supporting landlords in building generational wealth.
As the Preferental Screenings App gains traction, it is expected to become an indispensable tool for anyone involved in property management.
For more information about the Preferental Screenings App and to schedule a demonstration, visit: www.screenings.preferental.com