How to get a rental property with no rental history
Like many firsts in life, landing your first rental lease can be challenging.
Landlords use rental histories to find the most reliable tenant for their home, which means first-time renters are at a disadvantage when it comes to securing a property – especially when there’s lots of competition for a home and all the other applicants have rental histories.
So what can you do to get a rental lease if you’ve never had one before?
Fortunately, supplying a clean rental history is far from the only way to prove your reliability.
Here are five top tips to help you secure your first lease:
- Find a guarantor
Above all else, landlords want to make sure that you’ll pay your rent on time.
One of the easiest ways to give them peace of mind is to find a guarantor – someone who can support your application and promise to pay your rental payments should you fail to meet them.’
- Set up a direct debit
Many rental offices will insist on tenants using a direct debit payment system for rent. But, even if it isn’t required, it helps to offer it as part of your rental application. It shows that you’re committed to paying your rent on time, which, again, is one of the most important competencies when it comes to renters.
If some or all of your income comes from Centrelink, remember you can use its Centrepay automatic payment system.
- Show proof of regular payments
Have you ever bought an appliance or electrical good with a finance contract? If so, showing your property manager proof of regular payments will go a long way towards proving your financial trustworthiness.
Any statement that shows a record of regular payments – even if it is not a rental situation – can help your case.
- Provide evidence of your income
The best way to prove you earn enough to service your rental payments is to ask your employer for a letter of reference.
The letter should include your exact salary, how long you’ve been working at the company and, ideally, a few sentences that suggest you’re doing well and unlikely to be laid off anytime soon.
- How do you spend your money?
Similar to how banks work out if you can service a home loan, property managers use a 30% formula when deciding if you can afford a rental home.
If you can show exactly how you spend your money in a typical week, it may get you over the line.
Essentially, the harder you try to prove your trustworthiness, the more likely you are to secure a lease.
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