There’s no sugarcoating the fact the MIA’s rental market is brutal right now, with a vacancy rate of less than one per cent.
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Up to 40 people are turning up to Saturday morning inspections – you’d be forgiven for thinking you were in Bondi or Newtown rather than a country town.
Griffith Real Estate’s Sarah Davis knows what it takes to get approved. The former Griffith Public School captain has been a property manger for four years, and seen a number of mistakes applicants make that put them out of the running.
The Area News spoke to Sarah and summarised her five hot tips for those competing for scarce rental properties.
TIP 1: Have all your paperwork done the day you apply
Sarah says people sometimes hand in applications with a document missing or a form incomplete. When you’re competing against dozens of people and a landlord eager to choose quickly, this is a real disadvantage.
If you’ve got everything organised and up-to-date, it can put you in pole position. A tenant ledger and references are the most important thing to have.
TIP 2: Be upfront about your rental history
Everyone makes mistakes, and it’s not uncommon for people to lose part of the their bond, or miss a rental payment at some point in their lives.
This is not the end of the world, and Sarah said its best to tell the agent about that up front. Checks of rental histories can reveal when people are being dishonest.
If you owned up to previous damage and paid for it, that’s generally fine. If you did a runner, that’s another story.
TIP 3: References are the key
Sarah says it’s references that will make or break your application.
She said it’s important to have references numbers up to date, and let them know to expect a call.
If you don’t have a previous rental history, make sure you have good work references and character references.
TIP 4: Young people can use their parents as guarantors
People who haven’t rented formally before – such as young people who are moving out of home for the first time – are at a disadvantage. Especially when you’re competing against those who have a good rental history.
Sarah said using parents as guarantors can be a big help to ease uncertainties landlords may have.
TIP 5: If you’re paying more than $300 in rent, it may be cheaper to buy
Sarah said with rents rising so sharply, people buying properties in the MIA may discover future weekly mortgage repayments are less than their current rental payments.
It’s still possible to buy houses for less than $250,000 here, so it’s worth doing the maths – especially now the state government has abolished stamp duty for first home buyers. Those who don’t have enough for a deposit can explore other options, such as using their parents house as equity.
And if you’re only in Griffith temporarily, buying could still be worth it. When you leave, you’ll know they’ll be no shortage of applicants wanting to rent it out.