South African prop-tech startup Preferental has launched a new app aimed at revolutionising tenant screening by offering a faster, more efficient and cost-effective solution.
Formed in 2017 by Ross Fitzcharles, Preferental provides innovative solutions that enhance the efficiency and effectiveness of property management. By combining cutting-edge technology with deep industry expertise, the startup offers tools and platforms that help landlords and property managers build and sustain generational wealth.
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.
“Currently, 18.3 per cent of tenants are in arrears, with those in default owing an average of 77.5 per cent 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,” said Fitzcharles.
Despite these challenges, 40 per cent of landlords in South Africa do not conduct any form of tenant vetting, leaving themselves vulnerable to these risks.
“In effect, only six in 10 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,” Fitzcharles said.
