How to stand out from the crowd when applying for rental properties

Being knocked back in a competitive rental market is disheartening – particularly with tight vacancy rates and rents rising in most capital cities across the country.

This has seen tenants vying against each other for a rental, with the national vacancy rate at 2.5 per cent in the December quarter, according to the lastest Domain Rental Report.

First Step buyer’s agent and investor Dave Ward said it was crucial to remember who you needed to impress to secure a rental. This is usually not the property owner themselves.

“The landlord is often sold the tenant by the rental manager,” Ward said.

“The property manager undertakes the reference checks and ultimately provides the landlord with their opinion,” he said.

At the open for inspection

• Dress smartly.
• Be on time.
• Introduce yourself to the property manager.
• Be genuine.
• Communicate clearly.
  Source: Terri Scheer Insurance, Belinda Butler

​One of the first contact points for most tenants and landlords is at the open home. This is usually the first time a property manager has seen a tenant in person and often the first time they have spoken.

Tenants Union of NSW policy officer Ned Cutcher recommended tenants try to make themselves “memorable” and “known” to the property manager, particularly at a busy open home with lots of people viewing.

“Building up a rapport is the best advice I can give to tenants,” he said.

LJ Hooker Double Bay senior property manager Nicholas Hayes said being on time is critical as being late suggests you are disorganised and forgetful.

“Even if you’re running five to 10 minutes late, a simple phone call or SMS is common courtesy and keeps everyone happy,” he said.

Many tenants do not converse with the property manager when they see a rental, particularly if it’s busy.

In reality, if it’s busy it means the property is popular and it’s even more critical to introduce yourself to the managing agent, Let’s Rent managing director Lisa Indge said.

“A tenant should introduce themselves, even if it’s busy, and follow through if they promise an application,” Indge said.

However, controlling how you speak to the agent is also critical – you want to appear “reasonable” but not “demanding”.

“When we’re talking to someone, what we don’t want to hear is that the home needs to be re-painted, re-carpeted and with a new kitchen for them to consider it,” she said.

“They should instead ask whether the landlord would consider making the change.”

She also warned against bringing children to the open for inspection, particularly if they’d struggle to stay behaved.

“How the tenants act at an open home is a clear sign of how they’ll treat the property if they rent it,” she said.

Your application form

• Ask how the agent prefers to receive the application.
• Fill it out completely.
• Aim for a personal touch.
• Provide detail to explain anything that may be unclear.
• Provide the application in a timely fashion.
  Source: Lisa Indge, Let’s Rent

A quick way to alert a property manager that you’re a good person to do business with, is to inquire as to how they would like to be sent their applications.

Many agencies preferred online applications for the ease of processing and contacting tenants, Indge said.

If you’re applying with other people, ensure you all have your applications completed on time so the agency isn’t waiting for more details to consider you.

Although filling out every field on the application is critical, you should also consider giving it a personal touch.

“It’s nice to have a bit of a story in your application, not three pages but a paragraph is great, as really all we’re doing is basing it on that application,” Indge said.

This could include details on why you’re moving to the area, but also any explanations around discrepancies in your application.

Indge said it’s “not an exact science” – however, she would be hesitant to rent a property to someone where the rental cost was 40 per cent or more of their income. If there was other income coming in that wasn’t from your main employment, this information would be best included on the application.

Ward said that adding detail could also help remove suspicions that would otherwise be unfounded.

“I am wary when it’s a four-bedroom home and it’s a single person applying [to rent it] as you don’t know if they’re going to be subletting it out or what they’re doing,” he said.

“It’s always difficult to assess beforehand, especially with younger people who don’t have as much of a rental record.”

For a prospective tenant who can explain why they need the extra rooms, or can provide alternative references to explain their character when they have not previously rented, these issues can be quickly ironed out.

Supporting information and other considerations

After your application, your next chance to impress a property manager is with your references.

These will usually be from previous landlords, housemates, property managers and even campus building managers if you have never rented in the private market before.

Indge warns that regularly she calls references who are unavailable or had not been told they had been used as someone’s rental referee. Speaking to your references beforehand and knowing what they are likely to say is a good way to make sure you’re not caught off guard.

Similarly, if a tenant has pets, it’s recommended to include references that can speak to their behaviour.

Indge suggested including references from rentals where the pet has been before, information on whether the dog has a walker or goes to doggy day care and details about the pooch’s behaviour and vet details.

Once the references have been called, if it’s still a tough call for a property manager – offering a little extra in weekly rent may be good as it “shows you’re keen,” Indge said.

“If the competition is there it demonstrates the strength of your interest in the rental,” she said.

Hayes recommends going above and beyond with the details provided to support your application.

“A potential tenant who is able to show their income on a payslip is standard, however a potential tenant who is also able explain their spending trends, show bank statements and demonstrate their saving capabilities can show forward thinking and planning,” he said.

Despite all these efforts, you may still not be the strongest applicant for the property and will have to keep searching.

Other reasons you may be denied

Sometimes, there’s a more damaging reason that you’re not being accepted as a tenant for that home, Cutcher said.

“There’s nothing specific in the renting laws about discrimination, so it’s the Anti-Discrimination Act that applies,” he said.

These laws prohibit discrimination based on race, gender, age, sexuality, disability and a host of other factors.

“If you’re knocked back on these grounds, then you should speak to an anti-discrimination lawyer on this basis,” he said.

However, it can be difficult to prove or to know for certain whether this has played a part. A tenant can ask for feedback as to why the application was rejected, but landlords and real estate agents are not under an obligation to provide a reason, he said.

Another reason a property manager may knock a tenant back is when they are found on a tenancy “blacklist”.

“If you have been knocked back because you are on a residential tenancies database, or a blacklist so to speak, they are obliged to tell you,” he said.

“There are limits to how long you can be on the database and tenants advocates can be spoken to if you think you have been unfairly put on the database.”

Information cannot be kept on a database for more than three years and the property manager who finds your record should let you know within seven days you are on the database, including which agent listed you and the database you are on. You can then speak to the agent who listed you for a copy of the information – they are required to provide it within 14 days free of charge.