Renting is growing more and more popular as a result of the increased freedom and less financial commitment as a result of continually rising property prices.
With our years of experience in real estate, we have helped many individuals rent their properties successfully in and around Victoria and we would like to help you understand the right process through our expertise experience in the field.
Renting is becoming more popular in Australia, with around 6.3 million people living in the private rental sector, which is reported to be the highest rate since 1960 according to the productivity commission report 2019.
There is also the problem of rising home prices and buyer affordability. Also, not everyone wants to buy a home, bear the burden of a mortgage, or be confined to the same house in the same neighbourhood. They desire the freedom and lifestyle perks that renting may provide.
With rising property prices across most of Australia, first-time buyers are finding it difficult to get a foot on the housing ladder. However, the Australian goal of owning a property has not vanished entirely, albeit in a new form.
Rather than purchasing a home to live in, many first-time buyers are now renting a home in an area they want to live in and purchasing an investment property in an area they can afford. This is known as rentvesting. While every investment choice should be made in consultation with your financial advisor, rentvesting offers diverse benefits to you.
- It gives you the opportunity to get into the real estate market with the chance to buy immediately rather than saving later.
- You can start building wealth by continuing to rent while increasing a property portfolio and your wealth.
- It also gives you many tax advantages as investors may be eligible for tax breaks.
- There will be less emotion in the purchase; that means the investment site is chosen based on financial gain potential or rental return, rather than whether you intend to live there.
- You will have the freedom to move. As a tenant, you still have the option to move at the conclusion of your term.
Whether you are renting an apartment or a home, the process of discovering, examining, and applying for a rental property is the same.
The secret to effectively renting a house is knowing how to conduct rental market research, what to look for during an inspection, and how to draft a strong rental application. Allow us to assist you as you proceed.
2. Online rental property searches
Searching online is the quickest method to discover a rental home, and our site is a fantastic place to start. With many homes listed under our property management, it’s simple to focus your search and select a house that fits your needs both financially and practically.
Real estate portals are excellent resources for market research and understanding rental rates in various suburbs. Additionally, it’s a smart idea to sign up for rental notifications.
Rental inspections can be busy. This combined this with the fact that you only have a limited time to inspect the property, and to decide if it is suitable, can make inspections challenging.
Viewing a property in person ensures there are no surprises. Outside of the basics, such as, does it have the right number of bedrooms and enough space, below is a simple checklist of other things to look out for:
- How secure is the property and does it have smoke detectors?
- Overall cleanliness and presentation of the property
- Does the space fit your furniture? – It never hurts to measure
- Does it have enough storage or space to bring your own?
Is there heating or cooling? Is it energy efficient? - Does it have room for your white goods?
- Do the windows open and close easily?
- Is the cook top gas, electric or induction?
Once you’ve located your ideal rental home, you must fill out a rental application. Remember that the property can be in great demand and that being approved can be quite difficult.
The important thing here is to make sure your application contains all the relevant information:
- Identity documentation is essential. It would be great if it is a passport or a copy of your driver’s licence.
- Please provide your rental ledger if you have previously rented a property.
- Personal recommendations from employers, the director of student housing, or other trustworthy sources are acceptable if you have never leased a place before.
- Having your application accepted depends on your financial situation and your ability to pay the rent.
- To boost your application and demonstrate your capacity to pay the rent, think about including pay stubs and bank documents.
- The best references come from former tenants, property managers, and employers.
- Consider making a rental resume that you may distribute at any moment.
- Include a cover letter with your application; it will make it stand out by outlining your qualifications.
- Speak with your Real Alliance property manager; it’s usually a good idea to put a face to the application.
When your rental application gets approved, you usually get an email from your property manager or landlord notifying you that your application was successful.
A copy of the Residential Tenancy Agreement, often known as a lease agreement, will also be sent for your perusal and signature. It is crucial that you thoroughly read this agreement before signing it since it contains information about your rights and obligations and is legally enforceable.
Usually, you’ll have to pay the bond before you can move in. This is held as security in the event that the renter violates any of the contract’s stipulations, including those pertaining to excessive damage or unpaid rent.
A copy of the condition report will also be sent to you prior to move-in, which you should sign and maintain on file. This is a list of the property’s overall condition of repair, broken down by room and including fixtures and fittings.
6. What exactly is a residential tenancy contract?
A Residential Tenancy Agreement, or lease as it is called, is a legally binding agreement between a tenant and a landlord that sets out the terms and conditions for the arrangement.
Do not sign the lease until you have read and understood the terms and what is expected of you as a tenant.
What should be included in a lease agreement?
- The name and address of the tenant
- The name of the property manager / landlord
- The start and end date of the lease
- The rent and when and how it should be paid
- The amount of bond required
- The length of the tenancy
When a renter begins a tenancy, they must provide a one-time security deposit known as a rental bond. In the event that a tenant violates the lease, it serves to safeguard the landlord. In the tenancy agreement, the bond amount is stated. The standard amount is 4 weeks’ worth of rent, however it might be a little bit more depending on the State or Territory you are renting in.
The State or Territory in which you reside will determine how you pay your rental bond. Each state’s government or an approved financial institution will maintain a “Bond Trust” where the bond money will be kept. Up to the conclusion of the tenancy, the money will stay in the Bond Trust.
You will receive a receipt in the mail with a rental bond number five to ten days after the bond is filed with the appropriate authorities. When your lease expires and you want to get your bond back, you will need this proof that you have paid your bond, so if you don’t get it, be sure to contact your landlord.
Following a final inspection of the property at the conclusion of the lease, the property management may ask for all or a portion of the bond to be returned to the tenant. Bond regulations vary by State and Territory, so be careful to research any applicable local laws.
A formal record of the overall state of a rental property is a condition report. A property manager will examine each room of the building and record its general condition prior to a tenant moving in. Any damage, no matter how slight, will be documented and described in the report. To support the written report, they frequently take photos or videos of the property.
Two copies of the report will be given to the renter to examine, respond to, and sign when it is finished. It is crucial that you, the renter, thoroughly read the report and make any necessary changes if you don’t agree with any of its findings.
The report will be used to evaluate the quality of the rental before the tenant vacates and, more significantly, before the property manager approves the refund of the bond, so make sure to preserve a copy of it for the rest of the tenancy.
You can contact one of our real estate agents or property managers to help solve all your rental property questions. With your local real estate market analysis and insights, we will help you find the right rental property for you.
