How to Get a Rental Property in a Hot Market

We’ve all heard the news and felt the sting, it’s a competitive market in Australia right now. So, if you’re wondering how to get a rental property in a hot market like ours, we’ve got 8 brilliant, expert-approved tips for you.

But first, you might be wondering why there’s a rental crisis in Australia right now. So, we’ll quick rundown of the main reasons.

Why is the rental market in Australia so hot right now

While there are plenty of socio-economic reasons why the rental market in Australia is experiencing a rental crisis, here are a few primary impacting factors:

• According to Corelogic, “rents are still rising in most capital cities and regional areas with vacancy rates low.” Since September 2020, rental property values have increased by 22.2% compared to a small lift in the rental vacancy (just 1.17% in December). Higher rental prices and low vacancies are what create a rental crisis.
• There has been a strong return in overseas migration since the reopening of borders. These international arrivals, with students making up a large part, are decreasing the rental property vacancies.
• With the repeated increase in interest rates since May 2022, housing affordability has decreased. It is now more expensive for people to buy a home forcing many to continue renting over buying.

So, if you’re feeling the heat from the hot rental market, you’re definitely not alone. Here are some steps you can take to secure your dream rental property.

1. Start searching early ie: 4 months ahead of your move-in date

We strongly suggest starting your search as early as you can. Ideally, four months before your move-in date. This will give you plenty of time to look at different rental listings and figure out what’s really important to you.

The earlier you start, the better chance you have of finding the perfect fit without feeling rushed or settling for something less.

Starting early also helps you better understand your needs. For example, you might think that you want your rental property to be a house, not an apartment. But, if you start your search early, you might find that you’re willing to give up a house for a shorter commute.

By researching the area, and assessing the rental market, you can better understand what your needs really are.

2. Decide what you need

About two months before your move date, it’s time to get serious about your search. Keep an eye out for properties that become available in the first two weeks of the month. That’s when you’re likely to have the most options to choose from. The end of the month is when the market gets more competitive.

And remember to stick to your wish list and priorities. If budget is a concern, focus on suburbs with a large amount of units in your price range. This way, you’re more likely to find available properties later and less likely to be priced out.

3. Set a budget and stick to it

It’s also important to know how much rent you can afford and there are a few concepts on how much you should spend on rent. For example, some experts say that your home should take up no more than 30% of your monthly income.

In a market where rents are on the rise, it’s easy to overstretch your budget just to get the perfect place. So, remember to stick to it.

4. Use Soho to help you keep an eye on your favourite properties

The filters and alerts on the Soho app can help you track the properties you’re interested in. When you set up your match profile, you can narrow down your choices using filters such as price, number of bedrooms and bathrooms, pet requirements, and more.

Once you’ve set up your profile, Soho will send you alerts for new listings that match your preferences.

Plus, with the Soho app, you can also shortlist all your favourite rentals and filter them according to things like earliest inspection date, price, newest listings etc. This makes organising yourself much easier.

5. Tell people you’re looking for a rental property

Keep yourself in the loop! The rental market is always changing, and you never know when a great opportunity will present itself.

Reach out to your friends, family, and neighbours – they may have inside information on units becoming available in their buildings or know someone who is moving out. By taking a proactive approach, you might be able to secure a place even before it’s publicly listed.

Consider posting in local Facebook groups for the suburbs you’re interested in to inquire about any upcoming rentals. Get ahead of the competition and be the first to know about a new opportunity!

6. Go to inspections prepared with a rental application

Imagine you’re a landlord or property manager at inspection time and all the tenants are coming through to view the property. Who would you be more keen on—the tenant who sends you their incomplete application the next day? Or the tenant who gives you their complete application on the spot, emails you a digital copy and can hand over the security deposit on the spot?

The answer is pretty obvious. So, before you go out on inspections, remember to:

• Write an awesome cover letter
• Find the right personal references
• Ace the ‘why is this rental property right for you’ question
• Know how to stand out in your application

Once you’ve turned in your rental application, the hard part is over, and you can wait to hear back about whether your rental application has been approved.

7. Consider negotiating with the landlord or property manager

Negotiating the terms and conditions of your lease can seem a little scary, especially in a competitive rental market. However, property owners have a lot on their plate when it comes to running a rental business, so finding dependable tenants is a top priority. If you’re looking to stand out as a tenant, consider these suggestions:

• Propose a long-term lease. If you’re planning on staying for two or three years, offer to sign a long-term lease. This can make you a more attractive applicant, and also ensure your rent stays the same for the next few years.
• Be flexible. If you’re able to move in quickly or on a schedule that works well for the landlord, let them know. This might give you an advantage in the screening process, or even result in a discount on the monthly rent. Whatever you decide with the landlord, remember to state in the lease agreement as well.

8. Explore other suburbs

We get it, once you have your heart set on a certain place to live, it can be hard to imagine living anywhere else. But sometimes, the rental of your dreams can be in the neighbouring suburb!

Don’t be afraid of adding a few more suburbs to your interested areas on the Soho app to see what comes up.

SOURCE: www.soho.com.au