So what can you do to get a lease if you have never had one before? Let’s get you educated on how to get your first lease.
Like many firsts in life, securing your first rental lease can be very scary and challenging. You don’t have a rental record. Occupying someone’s property carries legal responsibilities. And in many parts of Australia today, demand for rental homes in desirable suburbs is fierce and it is common to face hordes of rival prospective tenants at the open house inspections.
Get a Guarantor
Guarantors are not solely used for first home buyers. They can also help first time renters secure rental leases. This involves your parents or a family member backing your application, which provides a guarantee the rent will be paid on time.
This can be helpful if income may be tight. Having a guarantor could be just what you need to get that all important start in the rental market. Don’t worry, it’s not forever!
Remember, once you have six months on your rental record you’re on your way.
Set up a Direct Debit
Many rental offices will insist on tenants using a direct debit payment system for rent payments. But even if it is not mandated, offer it as part of your application. It shows commitment to paying your rent on time, every time and will be well received by the landlord.
If some or all of your income comes from Centrelink, remember you can use it’s Centrepay automatic payment system. This makes direct rent deductions from your social security payments and pays them to your leasing agency.
Show any Proof of Regular Payments
Have you ever bought and paid off an appliance or a vehicle with a finance contract? If so, show this proof of regular payments to the property manager handling your application.
It goes to show the property owners that you have proven record of consistency and commitment.
How does your income stack up?
Revealing in black and white how you earn your coin is essential. This is considered as the biggest factor for first time tenants. Ensure you include as much information as possible where and how often you are paid as this will stand you in good stead.
How do you spend your money?
Just like the banks do with home loans, property managers use a 30% formula to calculate if you are able to afford the rent.
Let’s say the rent is $300 per week. You need to show a regular net income of $1,000 per week (30% of $1,000 = $300).
If you earn $900 net income per week, you may struggle to get the lease. However there are always exceptions if you can show exactly how you spend your money in a typical week. It may just be enough to get you over the line.
All in all, it is your call to be proactive and prove your case to the property manager and property owner.
Don’t give up and keep trying until you get the opportunity to celebrate your first rental contract!
