How to navigate your rental application

Applying for a rental property in Australia can be a daunting task, especially with rising competition and increasing rental prices. Whether you’re submitting your first rental application or transitioning to a new home, the rental application process can be stressful. However, if you're well-prepared, you could improve your chances of securing the property you want.

From gathering supporting documentation to writing a standout cover letter, here are some steps you can take to make a good first impression and stand out as the best potential tenant for the property.

Current rental market in Australia

The Australian rental market has seen a significant shift in recent years, with rental prices at record highs, driven by a combination of increased demand and limited rental housing supply. Data from CoreLogic shows that the national median rent has reached over $600 per week, with capital cities like Sydney and Melbourne seeing even higher average prices. This has led to fierce competition, where tenants must present well-rounded rental applications to stand out to landlords and property managers.

Now, more Australians are renting than ever before, with nearly one-third of the Australian population leasing instead of buying.

Rising property prices and lifestyle flexibility have driven more people towards renting, particularly in metropolitan areas. With so many people vying for the same rental properties, submitting a complete and compelling application form is crucial to standing out.

Top tips for writing your rental application

Navigating the rental application process can be challenging, but being well-prepared can help you stand out. Whether you're a first-time renter or an experienced tenant, following these expert tips might just improve your chances of securing the property you want.

1. Be prepared with essential documentation

Often, one of the first things property managers look for in a rental application is whether all the necessary documents have been included. Being prepared with your supporting documentation helps to save time during the application process and ensures you’re seen as a reliable tenant. Here’s a checklist of what you'll want to include:

• Proof of identity: This can be a passport, driver’s licence, or birth certificate.
• Rental history: Details of your previous addresses, and the contact details of your previous landlords or agents.
• Bank statements and proof of income: This shows you have a stable source of income to cover the rent.
• Personal references and reference letters: These can be from previous landlords or employers.
• A completed application form: Ensure all sections are filled out accurately and thoroughly to avoid delays in processing.

By providing all the required documents, you could speed up the process, help agents access the necessary information, and reduce the chances of delays. This makes you more likely to be considered as a serious contender.

To protect yourself against scams and safeguard your personal information, always verify the address you are sending the sensitive information to.

2. Write a strong rental cover letter

Alongside your application form, a well-written cover letter is a great way to make a good first impression. In the cover letter, you can briefly introduce yourself, explain your reason for renting, and highlight why you’re the best candidate for the property.

For example, consider this template as a handy starting point for your next rental application:

Dear [Property manager's name],

I am writing to express my strong interest in the rental property at [property address]. With [X] years of solid rental history and steady employment at [your company], I am confident that I will be a reliable and responsible tenant.

Please find attached all the necessary documents, including bank statements, identification (driver’s licence), and personal references.

I look forward to hearing from you.

Best regards,
[Your Name]

Other details you may want to include in your cover letter are other relevant personal details such as if you have pets or are a non-smoker. You could also include your contact details (including your phone number) so that the agent can easily reach you during the inspection or application process.

If applicable and the property allows for it, you may want to include a pet resume that outlines your pet’s behaviour (and even references from past landlords or neighbours). This may help to assure the property manager that your pet will be a well-behaved addition to the property.

3. Build a positive relationship with the property manager

Attending the property inspection in person is another way to make a good first impression. Introduce yourself to the agent or landlord, ask questions about the lease, and show that you’re genuinely interested in the rental property. Being personable and professional can help set you apart from other tenants.

How to avoid common rental pitfalls

Navigating the rental market can come with its fair share of challenges. To avoid pitfalls, it’s important to carefully review the terms of the tenancy agreement and ask questions about anything you don’t understand.

 1. Understand your lease agreement

The Real Property Report highlights that 1 in 3 tenants (31%) were unaware of certain conditions in their tenancy agreements, which later led to financial stress. Taking the time to fully review the agreement can help you avoid unpleasant surprises.

Before you sign the tenancy agreement, make sure you're fully aware of its terms. Pay particular attention to clauses about rent increases, maintenance responsibilities, and the process for ending the lease.

2. Keep your rental bond secure

According to the recent Real Property Report, 24% of tenants have faced issues getting their bond returned, often due to disagreements over the condition of the property at the end of the lease.

When moving into a rental property, you’ll likely need to pay a rental bond — typically four weeks’ worth of rent. Before moving in, conduct a thorough inspection and document the condition of the property with photos and notes. Doing so can protect you from future disputes when it’s time to move out.

3. Know your rights as a tenant

Each state has its own laws governing rental properties. It’s important to know your rights as a tenant regarding rent increases, evictions, and landlord responsibilities. Resources such as the New South Wales Government website and Victoria’s Consumer Affairs can offer helpful advice to ensure that you are treated fairly throughout your tenancy.

Home insurance for renters: should you consider home and contents insurance as a tenant?

As a renter, you might think that home insurance is something only homeowners need to worry about, however, contents insurance for tenants can still be an important consideration.

While landlords are generally responsible for insuring the building, your personal belongings are not covered under their policy. This is where contents insurance for tenants comes in. Whether it’s for furniture, electronics, or clothing, contents insurance ensures that if something goes wrong like a break-in or a fire, you may not be left out of pocket.

What is content insurance for renters?

Contents insurance covers your personal possessions inside the rental property. This can include furniture, electronics, clothing, and even jewellery. If your belongings are damaged by a fire, flood, or theft, contents insurance can help cover the cost of repairs or replacements.

Why may content insurance be important?

Even if you think your possessions aren’t worth insuring, it’s good to consider how costly it might be to replace everything in the event of a disaster. For instance, if a break-in occurs or a fire damages your belongings, having contents insurance may mean you’re not left out of pocket.

Plus, renters are still responsible for any accidental damage they might cause to the property. Some policies can even cover liability for damage caused to the rental property itself.

You ought to also consider any exclusions, limits or conditions associated with certain contents when weighing up content insurance. Consider relevant policy documentation for more information.  

Preparation can put you ahead

Navigating the rental application process in today’s competitive market can be challenging, but with the right preparation and mindset, you can increase your chances of becoming the best candidate that agents and landlords want.

By having your documents ready, writing a standout cover letter, and understanding your rights and responsibilities, you’ll be in a strong position to secure the rental property you want. And don’t forget — while renting can be an excellent option, protecting your personal belongings with contents insurance is there to give you that extra peace of mind.

Keep reading: Discover more tips on how to keep your home safe from theft and what to do if it ever happens.

Whether you’re a first-time renter or a seasoned tenant, following these tips could help you avoid common pitfalls and make the rental process as smooth as possible. Learn more about home insurance, find out more in the Real Insurance information pack and get a quote online now.