How to get a rental property with no rental history.
Moving out of home and landing your first rental can be challenging. Not only do you have to source furniture, save money for the move, and navigate an unfamiliar world of electricity and insurance providers, but you have to secure a property first. Unfortunately for many first time renters they will find landlords tend to favour those with a positive rental history over those without a rental history at all.
Landlords will tend to favour those with a positive history because they can show that they are going to be a reliable tenant who pays the rent on time and keeps the property in a great condition. Fortunately, there are other ways to show a landlord that you will be a great tenant. Here are our tips to help you secure your first rental.
Find a guarantor
Landlords want to know that you will pay your rent on time. If you can, one of the easiest ways to give them this peace of mind is through a guarantor. A guarantor is someone who can support your application, promising to pay your rent should you be unable to do so.
Many young people choose to get a guarantor, like their parents or a family member to allow them to get into the rental market. It is a good idea to discuss this with your family member and determine whether they can afford the rent if you miss a payment or two. Remember, once you have six months on your rental record you are good to go.
Set up a direct debit
You will find that most property managers will require that you set up direct debit to pay for rental payments. However, if they don’t, offering to do this may make your application look more appealing than others.
Offering to use direct debit shows that you are committed to paying your rent on time, which is one of the most important competencies for renters.
Show proof of regular payments
Have you ever had to make regular payments for financing, board, or for other situations? These can go a long way to proving that you are a financially trustworthy. It is a good idea when applying for the property to provide as many documents possible showing proof of regular payments or repayments for something. This will make you appear capable of keeping up with regular payments making your application look appealing.
Provide evidence of your income
One of the best ways you can prove your capacity to pay the rent is by providing your income and a letter of reference from your employer. The letter should include your exact salary, how, long you have been at the company and a few sentences suggesting you are doing well and are unlikely to be laid off. For freelancers, provide as much information as possible regarding your income and how often your get paid.
To work out whether you can afford the rent or not property managers will look at 30% of your income. This is an amount which, if the rent is above, means you are in rental distress and have a higher risk of missing payments. So, when applying for a rental property look to keep the rent at or below 30% of your income to give your application a higher chance of success.
There are many first-time renters out there who will be wonderful tenants, which is why they are not outright dismissed in most cases. Property managers and landlords simply want to see proof that you are in a great position financially and will pay the rent on time. Provide as much documentation as possible, consider paying your parents regular board for a few months to show regular payments, and keep looking for properties at or below that 30% of your income threshold. If you are looking for a great home to rent check out our property listings.