Nothing to Show: How to Land Your First Residential Lease
The moment has finally come and you are ready to move out on your own. This is an exciting time in your life, but that thrill can be diminished when you have difficulty finding a landlord who will rent to you without any rental history. All hope is not lost, though. Here are some simple, yet effective steps you can take to boost your chances of getting approved to rent your first property.
Don’t aim too high
Being a first time renter you are excited at the prospect of having your own place and becoming independent. You may be applying for the more popular properties where you are competing with long term renters with good references which will make it almost impossible to succeed over these types of applicants.
Part of your initial goal should be to secure a property and build up a successful tenant history.
Perhaps consider a property that is not as popular to other long term renters. This type of property may be a smaller unit, or be a dated building, or perhaps its location isn’t in demand and is not attracting any interest.
You can offer a shorter term tenancy as a way of saying “give me a go, I won’t let you down”.
If you are successful in securing such a property, care for it as if it were your own, pay the rent on time, and you will quickly be on your way to having a good tenancy history that will place you well for your next rental.
Set Up a Direct Debit
This is another way to boost the property manager's confidence that you will successfully make your payments each fortnight. A direct debit will automatically deduct the funds from your account rental period and transmit them to the property manager. This way, there is no chance you will forget to make a payment. Setting up your direct debit to coincide with your pay day will ensure the payment goes through, helping you to avoid costly bank charges and putting a smile on your property managers face!
Show Proof of Payments to Other Creditors
If you have a credit card, car loan or other installment payment, you may want to consider including some of your past statements with your application. This will show the property manager that, although you don't have any rental history, you do have a history of paying your debt obligations as required. Typically, the last six months of statements will be sufficient to establish your payment history. The larger the monthly payments you can demonstrate, the better. This way, the landlord will know that you are capable of handling large payment amounts, like rent payments.
Show Proof of Income and Budgeting
You'll also want to include your pay stubs and bank statements from the last several months. Landlords will be more inclined to rent to you if they have confidence that your income is sufficient to cover the monthly payments. If for example, your take-home pay is $3,000 per month, you should have no trouble paying $1,000 a month in rent (with no other fixed commitments). However, a property that costs $2,000 per month would likely be out of your range. Be reasonable in terms of what you can afford and you'll greatly increase the likelihood of qualifying for a rental.
Work with a Rental Agency
A local rental agency like Darwin Rental Specialists can assist you in finding a property that is suitable for your current financial situation. Rather than wasting your time looking at properties that you can't afford or won't qualify for, you'll get to see properties that are best suited to you. Your agent can also help you throughout the application process, so you have the best chance of success.
Although it may seem like you'll never find a property manager who will rent to you without a history, it is possible. With a bit of time and effort, you'll be moving into a new place in no time.