On March 10, 2025, South African prop-tech startup Preferental launched a tenant screening app, designed to transform how landlords and property managers evaluate potential tenants.
Preferental, founded in 2017 by Ross Fitzcharles, uses technology to improve property management.
This tool leverages advanced artificial intelligence (AI) and machine learning (ML) to provide real-time, accurate tenant evaluations, empowering landlords to make informed decisions quickly and confidently.
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Enhancing efficiency and accuracy
The Preferental Screenings App is designed to automate and expedite the tenant screening process, reducing it from 12 to 24 hours to mere seconds. This efficiency is crucial in South Africa’s rental market, where 18.3 percent of tenants are in arrears, with those in default owing an average of 77.5 percent of one month’s rent.
The app performs efficient credit checks, background verifications, and rental history assessments, generating comprehensive screening reports. The software minimises tenant defaults and property damage by providing accurate tenant evaluations using advanced AI and ML algorithms.
Ross Fitzcharles, founder and CEO of Preferental, emphasises the importance of tenant screening in the current market: “Currently, 18.3per cent of tenants are in arrears, with those in default owing an average of 77.5per 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”.
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Preferental empowers landlords with advanced features
The app offers a range of innovative features, including automated risk-based deposit recommendations and fraud prevention through real-time employment and bank statement verification. It seamlessly integrates with leading financial and background check services such as TPN, TransUnion, and Compuscan, ensuring a comprehensive assessment of potential tenants.
Tenants pay a one-time fee of R249 ($13-$14) per screening, which includes comprehensive services like credit checks and rental history assessments. Thus, landlords are relieved of the financial burden.
Fitzcharles highlights the legal challenges landlords face, stating, “The law is skewed in favour of tenants and often 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 app’s user-friendly interface and robust security measures, adhering to POPIA and GDPR regulations, provide landlords with peace of mind while navigating these challenges.
