Have you found a rental property you like but are unsure how to apply for it?
Here’s everything you need to know.
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Applying for a Rental Property? Here's What You Should Consider First!
Applying for a rental property – or rental properties depending on how competitive the market is – can be an overwhelming task. Even if you are an experienced renter, the amount of paperwork involved in a rental application can be difficult to manage.
When you find a property you like, you’ll should complete a rental application as soon as possible. This will then be reviewed by a real estate agent.
In this article we provide you with some tips to help manage the process of applying for a rental property, especially for the rental market in Newcastle, Lake Macquarie and the wider Hunter Region, where renting is highly competitive.
Here’s how you can approach this.
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How to Apply for a Rental Property in NSW?
Inspecting a Property
Inspections are crucial when you’re looking for a suitable place to rent. They can either be arranged with a real estate agency or a residential rental provider. During your interaction with the property manager, ensure the following:
- Enquire about the specific property amenities
- Keep a photocopy of your documents, like your ID proof and income statements
- Secure the application form from the agent or rental provider and fill it out as soon as possible
- Ensure you can pay the advance rent and the bond (equivalent to 6 weeks’ rent)
Submit Your Rental Application the Right Way
Securing a suitable rental property is quite difficult, especially when multiple parties become interested in renting the same space. If you want to ensure your rental application stands out, you must provide the following details:
- Provide proof of identification: Property managers require this to move your application through the process. Verifying identification documents include a driver’s license, birth certificate, voter’s ID, or passport.
- Provide your rental history: Landlords prefer experienced tenants with some form of rental history, and showing you have a great rental history with long-term renting and a history of paying rent on time will make you stand out. You can secure a rental ledger from your current real estate or property manager.
- Provide details of employment and proof of income: Property owners always look for tenants who have a stable income to ensure timely rental payments and require you to provide proof of income such as bank statements and recent pay slips.
- Share valid references in the application: Property managers will also ask for character references, which can include co-workers or past landlords. Before you submit your completed application form, inform the people mentioned as your references that property agents may contact them.
- Answer every question on the application: Real estate agents give preference to those applicants who fill in all the details in the form, so ensure you answer everything and provide as much information as possible.
It’s worth noting that you should never lie on your application form! Rental providers or real estate agents have access to rental databases that show your rental history, including data like unpaid rent and other tenancy-related issues.
Make Sure You’re Prepared Financially for Renting a Property in NSW
When you’re trying to secure a rental property, it’s important to calculate a budget before you start applying – how much rent per week can you afford and ensure you save up for the bond/security deposit before applying so you can secure a property.
Each Australian state and territory has its own rules about how much you can legally charge for a bond or security deposit, and in NSW you will need about 6 weeks’ rent (4 weeks’ rent for the bond and 2 weeks’ rent in advance) to secure a property.
In most Australian states, a real estate agent will lodge your bond with the corresponding government body. The bond is refundable provided the property is taken care of, suffers no structural damage, and your rental payments are clear.
Why is My Rental Application Getting Rejected?
There could be many reasons why your rental application keeps hitting the bin!
A handful of renters receive such rejections for several properties, before eventually landing the right place, despite there being a competitive marketplace.
If you’re not sure what’s lacking in your rental application, you can always ask the property manager or real estate agent for feedback.
Here are some possible reasons why your rental application could be facing rejection from real estate agents, property managers, and landlords:
Insufficient Evidence Regarding Your Income
Ensure that your rental application includes relevant proof of your employment and income, so you can demonstrate your financial capacity. You can provide bank statements, recent pay slips, rental ledger, or a letter from your employer.
Incomplete Application
Ensure you fill out every section of the application form and answer all questions stipulated in the application, as well as provide all the relevant documents. Providing as much information as possible, based on the requests made by the real estate agency or property manager, is the best way to make your application a cut above the rest.
Inability to Meet the Rental Price Range
Any financial information that indicates the rent may exceed 30% of your household income, is considered out of your price range. In such a situation, you may not be able to afford the place and your application gets rejected. This is why creating a rental budget before you start inspecting properties and submitting applications is an important step in the process.
Checking and Processing Rental Applications
Are you looking to rent a property but don’t know where to start? Unsure what to expect from different real estate agencies or property managers?
Key Takeaways
- Inspecting a property and promptly completing the application form is crucial.
- Provide thorough details including ID proof, rental history, employment, and income verification, and inform your references.
- Financial preparedness is key; calculate your budget and save for the bond and advance rent.
- Reasons for application rejections can include insufficient income evidence, incomplete applications, and inability to meet the rental price range.
- Leah Jay processes applications by shortlisting and notifying applicants, with approved ones needing to secure the property quickly.
Here's What You Can Expect From Leah Jay
- We will commence processing rental applications by submitting a shortlist of applicants to the owners.
- Your application will either be ‘shortlisted’ for continued processing or declined, at which point we will notify you of the update on your application.
- If you have been shortlisted, we will continue to keep you informed about your application by sending you updates via email and/or SMS alerting you of any changes concerning your application.
- If your application is finalized to be presented to the owner for consideration, we will inform you as soon as the owners have made a decision.
- If approved for the property, you will usually have 24 hours to secure the property by paying a holding deposit, allowing you to book the space until you sign a legally binding agreement.
Once you succeed in applying for a property, check out the New Tenant Checklist, provided by the Department of Fair Trading. You can refer to this document and get insightful information on how to approach your new tenancy.
Need Assistance to Start Your Rental Journey?
At Leah Jay, we ensure tenants can have a safe, secure, and comfortable rental experience. You can also check out more properties in Newcastle, Maitland, and Lake Macquarie right here.
