Why Rental Credit Checks Matter More Than Ever for Landlords and Tenants

In an unpredictable rental market, landlords face increasing pressure to secure reliable tenants. With rents rising sharply in 2025, as reported by the PayProp Rental Index, landlords cannot afford to make leasing decisions based solely on gut feel or references. A single bad tenant can cost thousands in unpaid rent, legal fees, and property damage. That’s why thorough credit checks are more crucial than ever before.

While that is exciting news for those with rental properties, landlords face a key challenge: selecting tenants who are both responsible and financially stable. Gut feel and references still play a role, but more landlords should be relying on credit checks powered by national credit bureaus to make informed leasing decisions.

“Renting out a property is a financial commitment, and just like banks assess borrowers before issuing loans, landlords need to assess tenants before handing over the keys,” says Michael-Anne Abrahams, bond originator and property finance consultant at MyProperty Homeloans.

A credit report is more than a score

A tenant’s credit report provides insight into how they’ve managed financial obligations in the past. It indicates whether they’ve paid their bills on time, the amount of debt they’re carrying, and whether any defaults or legal judgments have been recorded.

“This isn’t about excluding people,” Michael-Anne explains. “It’s about assessing risk. If a report shows a history of missed payments or judgments, it’s worth asking further questions. You want to protect your investment and ensure the tenant can meet their obligations. However, it’s not just about historic debt or repayments. A credit report can show a landlord how a potential tenant is currently handling repayment as well.”

Verifying identity and reducing fraud risk

Rental fraud remains a significant concern, particularly in larger cities where demand for properties is high. Credit bureau checks also help verify key details such as identity numbers, contact details, employment history, and previous addresses.

This became especially relevant in a widely publicised case in Stellenbosch, where a tenant exploited legal loopholes and failed to pay rent for nearly two years, costing the landlord hundreds of thousands in legal and lost income fees.

“In some cases, we’ve seen applicants falsify references or employment. A credit check gives you an independent way to confirm who you’re dealing with,” says Michael-Anne. “That’s peace of mind, especially for private landlords who may not have access to other verification tools.”

Not all checks are equal

Many landlords and rental agents use platforms like TPN, which are valuable for reporting and retrieving tenant rental histories. However, it's important to note that TPN’s rental data is only available if the tenant has previously rented through an agency or landlord who reports to the system.

If that’s not the case, the platform might return no data — not because the tenant is unreliable, but because the system simply has no record.

Credit bureaus, on the other hand, pull from a national database of credit accounts — including store cards, phone contracts, loans, and more. These are updated monthly by registered credit providers and are more consistent across all applicants.

The best approach? Use both

TPN provides valuable rental history data where available, while credit bureaus offer a more complete financial profile. Ideally, landlords should access both types of information when screening potential tenants to get the fullest picture of financial responsibility. 

To do this, landlords can register with a credit bureau or partner with a bond originator or rental platform that offers integrated credit screening services. These platforms typically allow landlords to upload the tenant’s application, with consent, and access a credit report directly -  ensuring compliance with the National Credit Act and reducing administrative burden.

“Even if a tenant has no rental history, a credit bureau report will still tell you how they manage debt, whether they’re up to date with payments, and if there’s any cause for concern,” says Michael-Anne.

Final Thought

Like any good business decision, tenant selection should be informed by data. A credit bureau-backed check offers an affordable, reliable tool to reduce risk, protect income, and build long-term rental success.

As rental demand grows and regulation tightens, the need for thorough tenant screening becomes more important. By leveraging the right tools and data sources, landlords can make better choices — for themselves, their tenants, and the broader property ecosystem.