Rental Properties - Constantly Rejected! Am I Doing Something Wrong?

Ltoffee-eyes on 11/05/2017 - 16:42

Hi all,

My wife and I are at the end of our current lease. We're looking to move to the Mentone/Mordialloc/Parkdale area (currently living in Maribyrnong).

We've inspected loads of properties and have filled in many applications. However… We are finding that we are getting constantly rejected, with no explanation from real estate agencies.

Here are some details about our situation. Do any of these points stand out to you as red flags? If you were a landlord, would you reject our application based on these details?

  • Married, no kids
  • Both 29 years old
  • No pets
  • I am a self-employed software developer, generous income
  • Wife is employed part-time, average part-time retail income
  • Both have 5+ years rental history
  • I am an Australian citizen, wife is permanent resident (born in USA)

We provide ample ID, payslips, bank statements, etc. Would love to hear your thoughts as to our situation!

Home & Garden

Comments

  • PissLUR on 11/05/2017 - 16:53

    what kind of offers have you been putting down?

    • CyberMurning on 11/05/2017 - 16:58
      -1

      i think they wont make any "offer" this is not buying but renting.
      so i imagine the ad says "rental is $400/week" and OP filled up application means they agreed to pay that amount.
      but keep getting rejected.

      hmmm the only possibility is, owner/agent prefer tenant with stable day job regular so-so salary compare with self employed with high income.

    • toffee-eyes on 11/05/2017 - 21:27

      We tend to just offer the amount that's asked - in one case we offered $10 more.

      • 973728 on 12/05/2017 - 08:22

        If there are a lot of people going for the same place, an extra $10 a week helps or you could offer to pay 3-6 months rent in advance to secure a place.

        Edit: Have secured a place in the past with a higher offer. That said, in that instance, I wasn't even the highest offer but I guess I ticked the other boxes!

        Also have paid in advance to secure and this worked. This was at asking price.

  • beefabear77 on 11/05/2017 - 16:57

    No red flags that I can see. Any issues with referees / past rentals?

    • toffee-eyes on 11/05/2017 - 21:27

      Never :) Our references are spotless.

    • CacheHunter on 15/05/2017 - 15:32

      It may be worth checking your credit history. Occasionally the credit agencies stuff up, especially if there's someone else out there with a similar name.

  • CyberMurning on 11/05/2017 - 16:58
    +1

    then maybe just offer more than what landlord ask. yeah lets start bidding war on rental properties.

  • marcusv on 11/05/2017 - 17:01
    +2

    Could it be timing? Maybe download the application form from the real estate agents website and take your documentation to the inspection so you can hand it in right away. It could just be that others are getting in before you.

  • hashtagbargain on 11/05/2017 - 17:09
    +1

    Have you tried offering 5 or 10 dollars more per week on a property that you really like? I've seen it work.

    Apart from that, your profile raises no flags. You can also

    1. try a more expensive property
    2. try a property with a smaller agent and maybe talk to them before you put an application.

    PS.: Hows your credit rating?

    • toffee-eyes on 11/05/2017 - 21:28

      Credit rating is all good as far as I know. How do they actually check this?

  • [Deactivated] on 11/05/2017 - 17:12
    +3

    offer 3 months upfront.

    • toffee-eyes on 11/05/2017 - 21:28

      Not too bad an idea… Has this worked for you in the past?

      • CheapskateQueen on 11/05/2017 - 23:53

        You can try the rent in advance, definitely can't hurt.

        I sent a pdf of my bank balance of one of my offset accounts with my application. Just to give me an edge of "hey here's my bank account with 3 years rent". Shows financial security which means a lot.

  • [Deactivated] on 11/05/2017 - 17:13
    +1

    or ask ur current realestate agent to help u out maybe they have a branch in that area

  • blonky on 11/05/2017 - 17:18
    +4

    Out of everything listed, self-employed + part time partner is what struck me first

  • CyberMurning on 11/05/2017 - 17:20

    I heard many empty apartments at the dockland area but outside cbd there are shortage? Really? Any Melbournian agree?

  • [Deactivated] on 11/05/2017 - 17:24
    +4

    are you both white caucasians? might be to do with race I'm sad to say - I'm speaking from experience. they would never say anything to your face of course…

    • sane on 11/05/2017 - 17:33
      +1

      Yep, there are definite preferences for certain races in particular - more experience than racism (you should hear what chinese agents say about chinese applicants). The self-employed might be an issue, but generally not.

      I'd also say it's how you come across to the agent. Chat to them, seem interested and friendly, have your shit together, and look like you aren't going to give them any hassle. In the end it's the agent that decides most of the time.

      Oh, and smart casual clothes - turn up in a "Harley Davidson" wifebeater and you are going to be well down the list.

    • toffee-eyes on 11/05/2017 - 21:30

      Yeah, we are, and English is our first language. It's a thought that struck me too.

  • Pumpkin_rrr on 11/05/2017 - 17:31
    +1

    If you're self-employed, get a Ref from your Accountant to mention, among others: past 3 yrs income, how long in business, steady clientele….

    Btw, and plans to get married soon? Tell the Agent. This proves you're committed people. Just a thought, not compulsory of course. Might help in lifting your competetive edge.

  • imolared on 11/05/2017 - 17:33
    +1

    Applying for a rental property is like applying for a job. I make sure to include a cover letter with my application highlighting why you are the ideal tenant. Make sure all your paperwork is organised, easy to read and if need be highlight the important bits, give your previous landlord/agent a call to let them know that you are applying for a rental and if they are ok for you to provide them their details AND will give you a good reference. I'm renting in Sydney and in one of the highly sought after area and have always gotten the unit that I want/applied for (never offered any more than what is advertised per week rental). When I do inspection (which usually during business days) I inspect the property wearing my normal business shirt/pants attire.

    "I am a self-employed software developer, generous income" - can you prove that you've had a steady income for the last few years by bank statement or ATO Assessment?

  • Cheeper on 11/05/2017 - 17:42
    +2

    "I am a self-employed software developer, generous income"

    Not saying you are but some self employed do exaggerate their income so maybe if you could provide some proof to the REA it might help. The length of time this business has been in operation will also help.
    As mentioned above… LL's do tend to prefer people in regular guaranteed income employment and if there are a lot of applicants then they may be rising to the top of the list.
    Have a talk with your current rea and even a couple of others and ask them for some feedback on how you may make a better impact with your applications.

    • toffee-eyes on 11/05/2017 - 21:31
      +2

      Good point, I can see that people would exaggerate their income. I do provide bank statements and invoices though, so it's been easy to prove my income so far.

  • tsunamisurfer on 11/05/2017 - 17:56

    OP…its probably not you.

    They are likely to be more attractive (not physically) applicants out there. If the area is highly sought after they may be a silent auction happening that you are not aware you are part of.

  • supnigs super skids on 11/05/2017 - 18:19
    +2

    What do you mean by "generous" . What's your tax bracket?

    Also do you cook curries often? Curry bombing a house is a nightmare for land lords and it's future rental potential

    • [Deactivated] on 11/05/2017 - 18:39

      Do you cook curries often? Never seen that on an application form…

    • toffee-eyes on 11/05/2017 - 21:32

      Never cook curry, haha!

      I have been in the top tax bracket for several years and have been providing evidence of this with bank statements. However they don't seem to bat an eyelid at this. I really doubt my income is what's turning them away… There must be some other red flag here.

      • supnigs super skids on 11/05/2017 - 21:40

        Then you probably move around a bit.

      • DelhiBelly on 12/05/2017 - 08:17
        +1

        Out of topic, but why don't you try to buy a place instead? I know someone who was in a similar situation and then become a house owner in 30 days after being Successful at an auction.

  • t_c on 11/05/2017 - 18:49
    +2

    When I hear the term self employed software developer, I envision someone who gets most of their answers searching stack overflow and doing small odd jobs on freelancer.

  • ProggerPete on 11/05/2017 - 19:10

    You could also try telling the agent that your very keen and offering a deposit on the spot. Doesn't cost you any extra and removes the risk for the vendor that they might offer the property to someone who has since found something else.

  • prinsenhof on 11/05/2017 - 19:45

    I found it hard to rent when i had a beard. constantly got rejected (applied for 5 properties over a period of a month), had no idea why. Decided to shave my beard and got the very next apartment i applied for.

    They are that shallow. If you have tats or jewelry just hide it during the inspection.

    • toffee-eyes on 11/05/2017 - 21:34
      +1

      That's quite interesting, thanks for mentioning it. We don't have any outstanding features between us, in fact if I had to say so, I'd guess we are very boring looking. Maybe we are invisible? Haha

  • Randxyz123 on 11/05/2017 - 19:52
    +2

    Have you got a ABN for your software development business ? Say you are the managing director of <insert company name> instead of self employed

    • toffee-eyes on 11/05/2017 - 21:34

      Yes I do, and on most applications there's a field to provide this so I'm always up front with it.

  • tj101 on 11/05/2017 - 20:26

    Are you applying for 'popular' housing types, ie very low cost, or in an excellent area? Or one of a handful of houses in an apartment area? Or is your rental history 1 year each for 3 properties? Are you blacklisted?

    I would talk to the agent, let them know what you're looking for and even ask if there is something they would recommend to you. Who are your references? If you have a reference in writing, it is less work for the agent. A good cover letter is a plus, however one that says 'I am desperate for a property and have applied for heaps but been rejected' is a no no. A rental application is like a job application, it needs to look professional. Include your ID photocopies- less work for them to chase up. Bank statements. Your work could sound insecure, I'd highlight your incoming payments in your bank statements for them. I would not offer any extra money or 3 months upfront, it looks dodgy. Are you smokers applying for an apartment? What does your current real estate agent say about you? You need to present well to the agent, greet them, introduce yourself, shake their hand and look them in the eye. Are you dressed appropriately? Let us know how it goes.

    • toffee-eyes on 11/05/2017 - 21:35

      We're mainly applying for houses, 2 and 3 bedroom. Rental history is 4+ years in one location, and we're currently on a 12 month lease which is ending against our wishes.

    • Thatbargainhunter on 13/05/2017 - 20:05

      There is no way I'd give them my bank statements.

      Any real estate doing requiring that are scumbags who would probably screw the tenants for everything.

  • Odin on 12/05/2017 - 09:33
    +1

    Real estate agents generally work like this:

    • Who's at the top of the list for the rental on 123 Fake Street? This guy? Ok, nothing terrible in his application, he gets it. Throw these other ones in the bin.

    You guys are probably just unlikely not being on the top of the pile. I wouldn't worry too much and just keep applying.

  • chichi on 12/05/2017 - 09:37

    If you can afford it offering 3 months (or longer) rent in advance is a good idea. It worked for my parents when they were looking for a rental when they were having their current house built. They hadn't rented for 40+ years (always owned their own home) so this was basically the only way anyone would rent to them.

    • Thatbargainhunter on 13/05/2017 - 20:03

      This is illegal in many states.

      • [Deactivated] on 18/05/2017 - 13:58

        I think it's illegal in some states unless you offer it. We did it once paid 6 mths upfront and it was the best house we ever rented. Being self employed (newly) never renting before we had to do it and you just gotta do what you gotta do sometimes. If we didn't offer it, they wouldn't have been able to tick the box that said "proof of being able to pay"

  • Archi on 12/05/2017 - 10:10

    what nationality are you?

    I know people screen applicants based on their background and disregarding everything else.

  • azonki on 12/05/2017 - 12:51

    Ditch the personal ABN.
    Establish a Trading Name and set up a PTY LTD company.
    Employ yourself as a PAYG employee - with a fancy title and monthly pay slips.
    No need to tell anyone that you own the company, but important to establish a "normal" identity.
    Or. As was suggested earlier, go out and buy a property.
    Top tax bracket, many successful years trading = good risk as far as I can see.

  • goodcopbadcop on 12/05/2017 - 15:17
    +1

    Have you asked any of the real estate agents for feedback as to why you missed out? Otherwise you'll always be guessing.

  • Thatbargainhunter on 13/05/2017 - 20:02

    You shouldn't be bidding up. Rather bidding down. It is a renters market at the moment, at least for units. I have done this myself recently.

  • darkchoc on 15/05/2017 - 17:16

    Get friendly with the rental agent listing the property on rea website by calling them in advance. Tell then you are really interested, give a full application.

    Call them straight after too.

    The agents in site are usually not the decision makers, but get friendly with them and ask them what's the best way to secure the place quickly.

    Usually the successful applicant is someone that can move in NOW (ie no gap for landlord), flexible with term of lease (longer term usually preferred), can pay deposit and more rent up front, rental history statement, income statement and funds provided and index the paperwork for the agent.

    Make their job easier, makes your application better.

  • danielkcheung on 29/06/2017 - 19:04

    My wife and I are first time renters. We both have zero rental history. I am a self employed wedding photographer and unlike you, my income has been all over the place. My wife thankfully has payslips since the beginning of this year (2017). Together, we may be lucky to put together $65k before tax on a combined income this financial year (quiet AF year for weddings). But we do have substantial savings (> $160k in liquid assets). So compared to most professional tertiary educated couples, we probably weren't the best on paper.

    But here is what I did:

    I wrote a 3/4 page cover letter.
    Dressed up at the inspection (nobody else did).
    We both attended the inspection as we were going both going to be on the lease.
    Learnt the property manager's name and had a real conversation with them during the inspection (albeit less than 30 seconds in duration).
    Prepared a completed application to give to PM on the spot. (provided scans of IDs, bank statement, payslips, name of accountant etc).
    Followed up via email to confirm whether we had provided all the required info (despite being first time renters). Also completed application online within 4-hours of inspection.
    Oh, I also made the note of taking my shoes off at the inspection.

    The PM told us that there was a lot of interest and that there were 3 other applications that were being put forward to the landlords. She asked if we wanted to increase our offer as all the other applicants had done so. I refused ($495).

    We got approved, subject to a $5 per week increase to the rent.

    I think it was because we were in our early thirties, were agreeable to a considerably long lease compared to the competition, and made some effort. We definitely did not offer the most $$$.

    Supply/demand also plays a massive role (i.e. popularity of location for particular demographics etc).

    All the best and I hope you find the right place!

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