A Beginner's Guide to Renting

Editorial

Back when puss was a kitten and ladies still went to bed in rollers, property ownership was an attainable Australian dream. Then, the income-to-housing-price ratio slipped into nightmare territory and our hopes for the stability of bricks-and-mortar went with it.

In a nation that has been so endurably middle-class, there has been a sort of shame attached to tenancy. Rented accommodation was the province of students and paupers and long held to be “dead money”. Now, with the national average mortgage repayment claiming more than 30% of gross household income, it’s time for us to rethink not only the snobbery attached to home ownership but question the very idea that rent is, in fact, “dead money”.

Of course, the question about how to invest monies that would be otherwise spent on a home you own and occupy is one best addressed by a financial advisor; the answer might be as simple as increasing your voluntary contributions to Super or as complex as actually purchasing a small, affordable property that you rent out to tenants. Let’s leave the thought about wealth-building to accumulate in the back of your mind and concentrate on getting you and yours a lease.

First, take a deep breath. In our bigger cities, the rental market is wildly competitive. Further, it’s administered by 12-year-old Property Managers who still live at home with mum and dad and have no shred of empathy for you or your accommodation crisis. Please, don’t let their officious manner or the aggressive rental climate get to you too much. There is a house out there that fulfils some, if not all, of your needs. You just need to be patient and strategic.

Second, write a list of your needs and desires. These will include a budget and a postcode. They may include ducted heating, polished floorboards or garage access. Plan for the best and prepare to compromise.

Third, get your intel. Check the major real estate websites. Then, check individual real estate websites. And, don’t overlook print. Sometimes, local papers will carry ads by landlords hoping to save on the ten per cent commission agencies command. In short, use every information resource available; this includes the apps now purpose-built for Droid and iPhone by the major online players.

Then, start to attend inspections. If your schedule permits, you can make individual appointments with real estate agents for a newly listed property. This can give you a real edge. If you beat the Saturday rush and submit an application before every other bugger, you’re in with a good chance.

The Saturday onslaught, however, is almost inevitable. Here you can use your tablet or Smartphone to plan your trail through inspections; the bigger real estate websites make this a breeze with their apps. But, you might find printed pages more useful. Given that you should be viewing at least eight properties on a Saturday (yes eight. I’m serious; if you don’t have a car, you have to borrow or rent one), you might find that pieces of paper on which you can scrawl “I would rather eat my own offspring that live in this slum” are a useful memory aid.

If you have any interest in a property at all, grab an application from the real estate agent. (And these folks, by-the-bye, often request photo ID before permitting you access to the premises.) Have everything at hand you need to complete the application that day. In most states, each applicant requires 100 points of identification. Here’s what might be expected. Remember to have several photocopies of primary documents on hand as well as items, such as utilities bills, that prove your current address. Now, some real estate agents allow an online application but these are currently rather clunky and may require that you pay a fee to apply. Sadly, paper is still best.

While it is not a requirement to include a letter of reference from your former landlord or current employer with your application, I have found that this puts me to the front of the queue. I have also found that a personal letter of introduction was immensely helpful. It’s true that the real estate agent looked at me like I was a loony when I handed a document detailing my employment history and my love of gardening in along with the application but I suspect that it gave my landlord, a former owner-occupier, a better sense of who I was and how I would maintain her property. If you bundle all of this stuff together neatly and submit your application on the day of inspection, your chances for securing a tenancy are vastly increased. It’s a pain. But, much less of a pain than homelessness. Also, apply for every house in which you are interested. You are under no legal obligation to sign a lease for which you have been approved.

Needless to say, you must alert your employer and former or current landlord before application that they will be receiving a call from a real estate agent. If your last residence was a home that you owned, then request a letter from the real estate agent who administered the sale in which he or she should mention (a) your agreeable nature and (b) your house-proud approach to sales inspections.

It is possible, of course, that you have neither rented nor owned a house before. Even in this case, ask a family member to write a letter recommending you as a tenant.

Oh. Did I mention that you should don business-attire for the inspection? I don’t care if you feel silly. Frock up as though you were on your way to a performance review. Everything about your appearance and manner should scream neat and respectful. Don’t smell like smoke. Don’t swear. Don’t look like you’re going to fill the laundry with five pit-bulls and a meth lab. For heaven’s sake, behave as if you’re at a Royal Garden Party. I don’t care if you feel the need to be “real”. You’ll have plenty of time for that later.

As far as the emerging trend of rental auctions goes, my advice is: avoid them. I don’t even understand how this crap is legal. At the time of writing, there is a slight increase in major cities in vacancy rates. So, give these evil, money-grubbing rituals a wide-berth.

When you have attained approval, make sure you have access to one month’s bond and one month’s rent. Have the bank cheques at the ready (personal cheques are not accepted for Rental Bond) and continue behaving as though you rare at a Royal Garden Party throughout the transaction.

If anything about the transaction feels dodgy, ring your State’s Tenant’s Union. These people are awesome and will answer many of your questions by phone.

Welcome home.

Helen Razer, Citysearch