First time renters, unemployed

Discussion in 'Property Management' started by Angel, 28th Sep, 2017.

Join Australia's most dynamic and respected property investment community
  1. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    My kids - Disability Pensioner and ex-full time student now just starting first job - will be moving into their first ever rental soon, and we have no personal experience with how to present their applications. What info do they need to supply to the potential PM?

    Drivers License
    Bank statements
    Reference from the person they have been house-sitting for (no formal rental history with an agency)
    Centrelink Documents - no "real' employment history.
    University Degrees
    References from their volunteer/short-term employment places? Community Service sounds like he just got out of jail, rather than been working in a role at the local church for five years.

    What do you want to know about applicants?
     
  2. hobartchic

    hobartchic Well-Known Member

    Joined:
    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    I imagine it will be harder for them due to financial constraint compared with families. I have done a rental application before without rental history and been successful in a less competitive market. I provided employment details, volunteer work references and house sitting referee details and was approved in a small country town where it was easy to get a rental. These days most people volunteer if they are unemployed so most would not assume criminal back ground from this. An introductory letter might not hurt and a police check if they have one current is a good idea. Each real estate agency have their own process and requirements anyway.
     
  3. vbplease

    vbplease Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,575
    Location:
    Brisbane
    The most important thing I look for is a personal reference.

    Maybe a bit old fashion, but I'd recommend your kids going down to the local property manager (the re office that gets the majority of the rentals), present very well and have the other documents you referred to and apply for a whatever modest house they have, which has perhaps been vacant for a while?
    Once they have fulfilled a 6/12 month lease, paid the rent on time and looked after the home as if it was their own, they should have developed a rapport with the agent and could easily slot into any other rental they want?
     
    skater, mr500, ellejay and 4 others like this.
  4. Colin Rice

    Colin Rice Mortgage Broker Business Member

    Joined:
    9th Jul, 2015
    Posts:
    3,183
    Location:
    Perth
    Best way ^^^^^ imo. Nothing beats a good first impression and the fact they took the effort to personally present themselves to the decision maker will leave a lasting impression (hopefully a good one) on the PM.
     
    vbplease likes this.
  5. Ed Barton

    Ed Barton Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,229
    Location:
    Brisbane
    Drivers License - or similar to prove their identities.
    Bank statements - none of my business but PMs may like.
    Reference from the person they have been house-sitting for (no formal rental history with an agency) - Phone details essential. Um argh yes they were good house sitters, is different than "John and Yoko, yes they were excellent, wish all our house sitters were like that". Written references are always good - if they're not the receipent doesn't use them.
    Centrelink Documents - no "real' employment history. - For the DSP kid it's a pay slip. The working kid should provide pay slips.
    University Degrees - not remotely interested, maybe PMs are.
    References from their volunteer/short-term employment places? Community Service sounds like he just got out of jail, rather than been working in a role at the local church for five years. - strengthens an application that has no rental history. Just call it volunteering. List it as employment. eg employment? Tiger handler, RSPCA, volunteer.

    Show me the money! Can the kids afford the rent would be my first question.

    Offer to have at least the kid on DSP pay the rent through Centrelink.

    Offer to go guarantor for them.
     
    The Y-man likes this.
  6. Zoolander

    Zoolander Well-Known Member

    Joined:
    15th Dec, 2016
    Posts:
    668
    Location:
    Sydney
    A padded savings account showing consistent saving over time works for me if the applicant is unemployed or on disability. Asking friends and parents to deposit into it to fake this isnt recommended. As a landlord i want to know that the rent will be paid for the whole term of the lease- it is a business transaction and as long as that criteria is met, it shouldn't matter if the tenant is a student, family, boomer, on centrelink, or fully employed
     
  7. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    Thanks, lots of tips :)
     
  8. mikey7

    mikey7 Well-Known Member

    Joined:
    30th Mar, 2016
    Posts:
    1,173
    Location:
    Sydney, Brisbane
    This is what we did to get over the line when my wife (then girlfriend) and I moved in together in our first rental. Showed that we had money, and a regular savings plan.

    We had no references, prior rentals, nothing else.
     
    ellejay likes this.
  9. ellejay

    ellejay Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    2,192
    Location:
    Kimberley and NZ
    I just rented to a group of three young people renting for the first time. At least two of them have jobs but it was still a risk and we started with a six month contract. Now renewed to twelve months, a tradie went there recently and commented how lovely they are. They seem to have pride in the garden and house. Anyway long story short the pm phoned referees before the tenancy and this went well for them.

    This experience would make me more likely to give youngsters and first time renters a go in future.
     
    Perthguy, vbplease and mikey7 like this.
  10. wylie

    wylie Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,932
    Location:
    Brisbane
    Could you approach one of the property managers who post here and ask your sons to meet him/her?

    Our son recently paid several months upfront as a means of making his application more attractive, after missing a couple of places.

    And adding your name to the lease for the first six months until they prove themselves could be a good thing.
     
  11. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    How far back would the savings plan need to go. Three of the four sharers have only just started to put the plan in place in the last few months and they will have to move in November. Is three months OK?
     
  12. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    We will be talking to my PM but I'm not sure any others operate in the northern suburbs. They are now looking into sharing four-ways which will get them into property up to $500 a week. They need to have public transport access to ACU at Nudgee, QUT at Kelvin Grove and the locations that the two Aspies are already familiar with. The Fitness Trainer just landed a position at the QUT gym. It's a self-employment contract, :( of course, and dependent on client numbers, so not a "real" job.

    Bray Park had some suitable 4 bedroom houses available last week but way back near Warner, definitely not walking distance to the train station. They were also looking at some townhouses in Carseldine, more than 1 km from the station.

    Now you guys know why my hair is so grey!
     
  13. Gockie

    Gockie Life is good ☺️ Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    14,737
    Location:
    Sydney
    Good luck to them all!
     
  14. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    Thanks Linda
     
  15. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    They were accepted at the first place they applied for. It's at the back of Bray Park adjoining Warner, so three klms to Bray Park Station. Miss ACU is so excited to be adulting up that she wanted to move in on Thursday even though we cant transport the fridge and other furniture until Saturday. It turns out she has a bicycle and is happy to cycle to the station. They took a six month lease so they can move out easily if they dont like it.

    4 bedrooms, 3.5 bathrooms and a dbl garage for $395 per week. The garage is the biggest area in the place, but hey they have a gardener and a pool. The pool is the size of my living room and has to service about 500 people :eek::eek::eek:

    Aahr first homes
     
    Last edited: 10th Oct, 2017
    Perthguy, SueA, Tom Rivera and 6 others like this.
  16. hobartchic

    hobartchic Well-Known Member

    Joined:
    11th Sep, 2017
    Posts:
    1,513
    Location:
    Hobart
    Nice spot, have family living there. Great walking. Be a wonderful spot to have a pool and the train station gets into the CBD regularly. Hope they love it. Glad it worked out!
     
  17. Lizzie

    Lizzie Well-Known Member

    Joined:
    9th Jul, 2015
    Posts:
    9,618
    Location:
    Planet A
    Nothing like making a good impression - and being totally open/honest.

    We moved to a new town for hubby's work, where good rentals were hard to get - and we wanted to rent for 6 months to get a feel of the place before buying. One downfall. We had a dog. So, I took the dog along to the interview with the rental agent for the one and only decent place available for rent, where pooch was perfectly behaved and did her best cute impression. Also, dressed well myself and had a confident small talk chinwag with the agent.

    We got the rental.
     
    wylie, Marg4000 and Gockie like this.
  18. Angel

    Angel Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    5,813
    Location:
    Paradise, Brisbane
    They moved in today. The Moving Gods were with us too - It was supposd to rain on and off all day but the rain held off until Mark and I got back to our place at 7pm. The couple they are housesitting for is also happy - they can come home a week or two earlier than planned coz the weather out there is awful, and everyone is happy.
     
    Perthguy, Lizzie and Gockie like this.
  19. Colin Rice

    Colin Rice Mortgage Broker Business Member

    Joined:
    9th Jul, 2015
    Posts:
    3,183
    Location:
    Perth
    You put in some thought and effort and therefore got the desired outcome.

    Good move taking the dog with you.
     
    Lizzie likes this.