How to avoid wasting money on a rental that's not right for you

Finding the right rental can be hard. Many get put off by a high asking price, while others ultimately regret paying too little for something that doesn’t meet their needs.

But prospective tenants need to look beyond the basic numbers to determine if a property is the right fit.

Sometimes, problems don’t become apparent until after you’ve signed the lease, so it pays to know what to look for, and how to tell if a property is good value.

How do agents set the rent?

The rent largely depends on how much similar homes have rented for recently, according to owner of LJ Hooker Queanbeyan Kylie Maxwell.

She said prices can change depending on the number of rooms, distance to public transport, parking, yard size, the age of the property, and whether it was recently renovated.

“New presents better because it has other facilities that an older property doesn’t have,” she said. “An older property may not have appliances, aircon or secure parking.”

But she said aspects of a property that can lower its sale price, such as being positioned under a flight path or on the main road or train line, were less likely to reduce the rent.

• Why your rental applications keep getting rejected 

Old v new, house v unit

It’s worth thinking about which features you do and don’t need, especially when it comes to deciding between a house or apartment, or a new or old home.

For some, the lack of a yard might a deal-breaker but for others, gardens are not much more than a time-drain, according to Steve Jovcevski from Mozo.

“If you don’t want a backyard that you have to maintain, then you shouldn’t have a backyard,” he said. “Have a park nearby, a lot of people prefer to do that.”

It’s a similar story with the size and age of the property. Bigger properties are more spacious but need more cleaning and cost more to heat and cool. Older houses might look pretty, but often require more maintenance, which can be inconvenient for tenants.

On the other hand, problems with older properties are often more obvious and may have been fixed already, whereas issues in new properties might only come to light after occupation, which could be a problem if you’re the first tenant in a brand new building.

• Should you rent a house or apartment?

Deal-breakers to avoid when inspecting a rental

It’s important to watch out for warning signs for problems that might not become apparent until further down the track.

One of the costliest problems that people don’t look out for is draughts, according to Tenants Union of New South Wales senior policy officer Leo Patterson Ross. He said as a result, many people used airconditioning or heaters to combat cold or heat, leading to higher power bills.

“Look at the bottom of doors and check if it’s close to the ground,” he said.

He said prospective tenants should check that apartment entries were safe and well-lit. “Often you’re inspecting during the day and during the night you realise that the lights aren’t on.”

He added that it was critical to know whether the hot water heater was large enough to support everyone living in the property.

Jovcevski said traffic considerations were important when it comes to enjoying a property. “If you haven’t got off-street parking, is there parking in the street?”

He recommended driving past the property in the morning or evening at peak hour to check if the area was being used as a rat run.

• Ready to inspect a rental? Take this handy checklist

If you’re looking for your next home, take a look at Domain’s Ultimate Guide To Renting.