The Importance of Conducting a Tenant Data Base Search

13 Jul, 2015

We set out below the perfect example of why it is of such importance to conduct a search using our Fasttrack Database (soon to be renamed Tenant Track – but watch this space).

In February 2014 we were engaged to assist in the eviction of a tenant from a property in Eagleby. That property had been subscribed to our Barclay MIS Protect and Collect plan, and therefore all the benefits were available to the landlord of our eviction service (Reminder the subscription is just $55.00 per year).

The tenants had not vacated on the date of the Warrant and an assessment was made of the value of goods left on the premises and it was assessed that the value was above the Statutory limit of $1500.00. Therefore, we did what we call a ‘pack and stack’ which meant removal of the goods from the premises and storage. Because the landlord had the Barclay MIS subscription there was absolutely no cost to the landlord.

Rather, the tenants are charged for the cost of removal and recovery of those costs is undertaken by Barclay MIS. In this case, the costs totaled $2100.00. Eventually, the tenant paid these costs and their goods were returned to them.

The tenants were listed on the Barclay MIS defaulting tenant database in accordance with the Residential Tenancies and Rooming Accommodation Act (in this instance based upon the Tribunal Order which had issued). The listing was made at the first possible opportunity in accordance with the legislation.

These tenants moved to another property in Beenleigh. Because of the vagaries of the legislation, these tenants applied for this property and obtained a lease 4 days before the listing was permitted by law to be listed on the database.

Unfortunately, the managing agent who leased this property to these tenants was a subscriber to the Barclay MIS Fasttrack database. In accordance with best property management practice they conducted the database search. No adverse listing appeared, because as indicated above, the legislation did not permit the listing prior to the date of the actual listing.

The tenants paid their bond and the rental in advance. They conducted themselves as good tenants during the first six-month tenancy agreement. They signed another six-month tenancy agreement in September 2014.

Things then started to go awry. Constant rental arrears, Notices to remedy Breaches, promises to pay – the usual that a property manager must deal with, until after numerous Notices to Remedy Breaches for unpaid rent, a Notice to Vacate was issued. That Notice was not complied with and an Application was made to the Tribunal for a possession order. That Order was granted and the warrant for possession is to be executed on 14 July 2015.

Once the Order was made and the legislation complied with, a listing was placed on the Barclay MIS defaulting tenant database.

Fortunately for this landlord, he also has a subscription to the Barclay MIS Protect and Collect product. Therefore if the tenants do not vacate by the time of execution of the warrant, and goods to the value of $1500 or more remain on the premises, then Barclay MIS will conduct another ‘pack and stack’ at the expense of these tenants, and store those goods at no cost to the landlord.

Use the Barclay MIS Fastrack database. It is a FREE service.

On this occasion the tenants used the same modus operandi, namely, they applied for another rental property once they realised they were to be evicted from their rental property. They applied for and obtained a tenancy for six months in a brand-new property. Once again, they paid their bond and rental in advance (even though as at the date of writing this they have not vacated the former property).

The complicating factor in this is that the last property manager also had the subscription to the Barclay MIS defaulting tenant database. However, they did not take advantage of a simple one-minute search.

Had they done so they would have found, not one, but two adverse listings.

If the historical evidence is any indication, they have inherited a problem. The debts arising from the first two failed tenancies amount to nearly $8000.00. And as these previous landlords have subscription to the Barclay MIS Protect and Collect Product they have access to collection of the debts at no further cost to them (the tenants are on a payment plan for the first debt and until they actually vacate the second property the debt cannot be quantified or pursued).

Remember you have a duty of care to your landlord.

The unfortunate moral of this story.

Use the Barclay MIS Fastrack database. It is a FREE service. Available to every property manager in Australia and New Zealand. Whether or not your agency supports or encourages subscription to any of the Barclay MIS products, you can have FREE access to the database by simply contacting our office on 1300 883 916 and requesting a username and password.

Remember you have a duty of care to your landlord. That duty is of prime importance in the tenant selection process. If you have access to a defaulting tenant database, then you should use it. Again, this service is FREE to your office.

Finally, as we have so often heard, the response is, we have access to TICA or NTD. That is great. However, remember that no defaulting tenant database operator in Australia or New Zealand has any formal ‘recognition’. All of us, the database operators, are independently owned and operated. The information contained in our databases is solely dependent upon who subscribes to that database. Other database operators charge fees for access to their information.

At Barclay MIS, we have a philosophy that this information should be FREELY available to all within the industry.

Again, we would encourage you to contact us, register for access and receive your immediate access to our database, and hopefully you might be able to avoid the potential for the problem outlined above.


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