How to get ahead in the rental race
IT IS tough out there for buyers, with record house price growth and one of the most buoyant property markets since pre-GFC times.
Low levels of stock combined with a spike in intra and interstate buyers searching for a lifestyle change has pushed demand for Gold Coast housing, pardon the pun, through the roof.
Yet until sellers get on board, it leaves one big problem: a rise in the local population and nowhere for them to live
Unable to find somewhere to buy, home seekers, especially from Melbourne and Sydney, are being forced to rent.
Meanwhile, with median house prices on the up and the government’s Home Builder grant coming to an end, affordability is proving a problem, pushing people to rent, or stay in existing rentals for longer.
Those able to buy a house and land package, still need to have somewhere to live while their dream homes are being built.
These factors combined have led to the tightest vacancy rates on record on the Gold Coast, according to recent statistics from the Real Estate Institute of Queensland, including Surfers Paradise where there is usually an oversupply of investment properties.
The central beachside suburb, which recorded more than 2100 vacant rentals at the peak of the pandemic nine months ago, is sitting on 0.7 per cent stock availability.
In the northern suburbs, the median vacancy rate is 0.6 per cent, and it’s even more dearth in the southern suburbs at 0.3 per cent.
REIQ chief economist Antonia Mercorella said this lack of rental availability was putting unsustainable pressure on the housing sector and said urgent action was required by the state government to better support the industry.
What this all means is that when it comes to securing a rental, competition has never been fiercer. Tenants report attending viewings pitted against dozens of others, with some willing to go to extremes to secure a property, including paying prices way over and above an area’s median rent.
For those who can’t compete on a cash level, there are other things potential tenants can do to put themselves ahead of the competition.
According to property expert Tamara Wrigley, who owns a portfolio of more than 20 investment properties, people have to be dogged in their approach to stand out from the pack.
“Gone are the days of being cavalier when it comes to finding a rental property,” she said.
If you are applying for a property you need to be organised, Ms Wrigley said.
“Attend viewings armed with cover letters, personal identification, tenancy and personal references, bank documents, pay slips and anything else that can support your application.
“If you’ve haven’t got all your ducks in a row, forget it.”
Having your rental bond ready is also recommended.
“It might seem obvious, but so many potential tenants miss out on the rental they want because they don’t have the cash. Whether it’s out of your own pocket or a loan etc, make sure you have a deposit ready to go,” Ms Wrigley said.
Estate agents can sometimes get bad press, but Ms Wrigley said building a rapport with an agent is beneficial.
“If you establish a nice friendly relationship, you’ll be front of mind when the next suitable place comes up,” Ms Wrigley said. “If it comes down to just a few applicants, the agent’s steer usually influences who the landlord chooses. Make it be you.”