As we head into the peak demand period for rental properties it is important for tenants to understand the attributes of successful rental applications.
Starting this month, demand for rental properties increases across the State. Demand historically peaks during February and March when, based upon historical Residential Tenancies Authority data, leases for about 40,000 rental properties will be negotiated in just two months.
According to rental listings by REIQ accredited agencies on reiq.com, there are currently about 13,000 properties available for rent across Queensland.
Queensland’s rental market was in a state of undersupply for most of 2012, it is more important than ever for prospective tenants to understand the rental process.
Property managers generally use two equally important criteria when assessing prospective tenants for a rental property.
The first is proof of their ability to pay the rent as property managers have a fiduciary duty to the owner, or landlord, to effectively manage the risk of their client’s investment property.
Part of the rental process is to assess whether there is sufficient evidence from the prospective tenant that they would be able to meet the rent. The calculation is generally that rent should not exceed 30 per cent of the total income of all tenants named on the lease.
The second criterion is evidence of ability to care for a property. Proof of this criterion generally can be provided through a rental or home loan history and/or proof of previous living arrangements, references from previous landlords, and/or personal references.
In times of increased demand, landlords are also reminded that they must advertise their rental property at a fixed amount.