First-Time Tenant? Here’s a Guide for You!

When it comes to housing, a lot of Australians are forced to rent until they can purchase a property. However, if you have never rented a property before, you could feel a little helpless in the absence of rental references from previous rental agencies. The good news is that you have the ability to continue proving your suitability as a tenant.

How?  You have to first understand the necessity of these references. Then, even as a first-time tenant, you would be able to customise your application to get a place.

What is a rental reference?

A reference is simply a letter or document that attests to your reliability, dependability, and capacity to meet financial obligations.

Someone who knows you well must write a reference for you. This should ideally be a current or former landlord or property manager. However, if you’re a first-time tenant without any references, you can get one from your neighbours, flatmate, boss, or even coworker.

Giving a reference serves the function of introducing you to a prospective landlord. Thus, don’t be afraid to provide at least two. These references will provide them with expectations about what happens if they were to have you as a tenant at their property.

How can a first-time tenant obtain a property?

Getting approved for a property is still achievable even if you have never rented a house before.

Although references from past rental agents are preferred, there are various methods you can show that you are a reliable tenant. It will be necessary for you to demonstrate that you can fulfil the conditions of the tenancy agreement, maintain the property, and pay the rent on schedule.

You will be able to rent your first house if you can demonstrate that you are a responsible, neat person who has a track record of making your bill payments on time. Despite the fact that you are unable to produce a reference from your previous landlord, there are numerous other documents that can support your case.

To reassure your landlord or property manager, for example, that you will pay your rent on time, you can provide proof of employment or regular income. It can also be useful to keep track of your monthly payments for mobile phone bills.

In the event that you have been residing in student housing, you may also provide a manager of the complex reference.

References from teachers, neighbours, or even your doctor might support your application, while references from your manager or company can show that you have a strong sense of responsibility.

Tips for First Time Renting

If this is your first time renting and you don’t have any rental references to support you, you probably don’t know where to start. Fortunately, there are a few ways to show that you are of good character with sufficient funds on your initial rental application.

Here are some tips as a guide for first-time tenants looking to secure their first rental property without reference. 

1. Provide a sense of security to the landlord

Landlords want to maintain the quality of their investments. Although they have certain maintenance responsibilities, the tenant also bears part of the blame.

For example, you will have to maintain the property’s cleanliness and order. Whether you grew up with your parents or a hostel for students, you have probably been subject to restrictions about basic housekeeping at some point. As a renter, you are responsible for making sure your bathroom receives enough ventilation to keep mould at bay, clean up spills and prevent damage to the walls, flooring and fixtures.

A cover letter to your application outlining your background and living habits can help to show rental agents and landlords that you are a suitable candidate and know how to properly care for a property.

2. Provide a guarantor.

A guarantor is someone who is willing to pay your rent in the event that you are unable to do it. Typically, your parents will serve as guarantors.

It is critical for landlords that you pay your rent on schedule. Having a guarantor enhances your application because it assures landlords that rent will be paid on schedule.  

This is an excellent choice for young people who are just moving out of home and anyone whose income is inconsistent or tight. If you choose to add a rental guarantor, state on the lease that they won’t be living at the property as this can contribute to the success of your application.

3. Present proof of income.

Showing your financial reliability to the landlord might be aided by providing evidence of regular payments. To show your landlord that you make a sufficient income and will probably be able to pay the full amount of your rent in the future, you can also present proof of your income.

You will need to present as much proof as you can if you work for yourself or don’t have a job that is stable. Providing the landlord with your most current tax return, client contracts, and proof of any savings you may have is one of the most effective ways for doing this.

4. Make a repayment offer.

If you are willing to pay a higher amount up front, certain landlords or real estate agents might take your application under consideration. Offering to pay three months’ rent in advance could help prove your dedication and reliability even if you have no prior rental experience. This can help you land your first rental, coupled with a cover letter that highlights your strengths and personal recommendations.

5. Establish a direct debit.

A lot of rental agencies require rent payments to be made by direct debit. You should still provide it with your rental application even if your prospective landlord doesn’t demand it. This is because it shows your dedication to making rent payments on schedule. 

6. Expand your search.

If your lack of rental history prevents you from renting, think about expanding your search. Searching for shared housing, where landlords are usually more accommodating, is one idea. Rent can be split when you live in shared housing, which might help you save money. Additionally, you can search online for private rentals or contact a rental agent to assist you in locating properties that meet your needs. 

And since renting for the first time, can be both thrilling and demanding. We, at Reval Estate Agents, created a guide on renting your first home to help you get off to a successful start. You’ll get up to speed and be prepared to move in with it.