South African prop-tech startup Preferental has introduced a groundbreaking app designed to transform the tenant screening process, offering a faster, more efficient, and cost-effective solution for landlords and property managers. Founded in 2017 by Ross Fitzcharles, Preferental aims to enhance the efficiency and effectiveness of property management through innovative technology. By merging advanced technological solutions with extensive industry knowledge, the startup provides tools and platforms that empower landlords and property managers to build and sustain generational wealth.
The newly launched Preferental Screenings App is specifically engineered to automate and accelerate the tenant screening process, reducing what was once a lengthy procedure to mere seconds. This significant reduction in time and effort alleviates the burden on landlords, allowing them to focus on other critical aspects of property management. Utilizing state-of-the-art artificial intelligence (AI) and machine learning (ML) technologies, the app delivers real-time, accurate evaluations of potential tenants. This capability enables property managers and landlords to make informed decisions swiftly and with greater confidence.
Ross Fitzcharles highlighted the pressing need for such a solution, noting that currently, 18.3% of tenants are in arrears, with those in default owing an average of 77.5% of one month’s rent. This increasing financial strain poses a significant risk for landlords, who may face the reality of rent defaults leading to prolonged vacancies and the costly process of legal eviction.
Despite these challenges, Fitzcharles pointed out that a staggering 40% of landlords in South Africa do not conduct any form of tenant vetting, leaving themselves exposed 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,” he explained. He further emphasized that neglecting this essential step can result in a myriad of problems, including dealing with tenants who may default on rent, cause property damage, or engage in illegal activities.
To maintain a secure and profitable rental business, Fitzcharles asserts that thorough tenant screening is not merely advisable but essential. The Preferental Screenings App aims to fill this gap, providing landlords with the necessary tools to ensure they select trustworthy tenants, thereby safeguarding their investments and enhancing the overall rental experience.
