Rent question for landlords

I’ve found out that I’ve been rejected repeatedly for homes as apparently I can only afford 540 per fortnight in rent, despite having four years of history of paying 820 per fortnight.

May I ask, if I have proof of paying above the 30% and never being late for rent, what is it that makes landlords wary of me?

 

No proof of income?​

 

I’ve given them proof of income, plus my rent receipts showing it, but they still say it’s not good enough

 

It would be enough for me

 

Landlords may be reading in between the lines?

How did you pay $820 per fortnight previously and now only $540 per fortnight? Different circumstances and if explanation was not provided, they may think of the worst situations? Not being late with rent payments is one factor to consider, others include potentially excessive wear and tear of the property, or hassle down the track of complexity of tenancy.

You have to allay landlord's anxieties as they have to look after their investments.

 

Could it be something else?

 

They probably consider that your rent is too high a percentage of your income

 

$820.00 per fortnight,have you ever thought just buying your own property ,as i know nothing above rents --property prices in your area but one would think you would be able to buy something within that payment range..imho..

 

If they have multiple applicants or if applicants are not hard to find, it's easier and safer for them to accept someone whose income fits the guideline than to analyse why someone whose income doesn't seem high enough might be an exception. It's as simple as that.

 

Surely its just a factor of competition?

 

This.

Essentially you are being extended credit, and the credit provider (the agent or landlord) needs to ensure that you can adequately afford it.

 

Question:
When you were previously paying $820 rent per fortnight, was your income higher?
If you have had a change in circumstances, that could explain the problem you are having. Perhaps you are now earning less, or being employed casually, or now have a dependent etc etc.

 

I think you need to really highlight for the property manager looking at your application that you can afford the rent (and is otherwise a great long term tenant).

Maybe include a cover letter explaining that you have paid $820 for the last 4 years despite being on the same income, and that your other living expenses are quite low, that you have no other debts and some savings? Providing evidence of your savings will definitely help, as well as maybe bank statements showing that you have surplus funds left over each month after rent and expenses.

Making sure your existing agent provides a good reference and you have a copy of your ledger to support that will also help.

 

I decided to speak directly to the property manager, as we’re always seeing each other now at opens. She said there’s nothing wrong with my application- it’s just there’s up to 50 people applying at the same time.

Another agent I met at the open was happy that I was so willing to provide years worth of rent receipts and copies of my bank statement (showing rent payments and current savings), she said as long as I could prove what I was paying previously and that it was never late, it shouldn’t be an issue. I did include a cover letter to the landlord this time, so hopefully that helps my application! I didn’t realise the housing market was so fierce

 

Its excellent that you found out the cause of your rejections and worked on it rather than blame the LL/agent/bank/economy/prime minister

Well done and good luck

 

I applied for a house last week, that I absolutely fell in love with (and I know I shouldn’t get attached because it’s a fierce market!).. but I added a guarantor (family) to the application to try and boost the financials, which the real estate agent accepted.. and after going through my application, she called the owner of my last home for a reference.. and the application is currently with the owner awaiting decision.
No other agency has actually called the owner before.. so I’m hoping this is a good sign.

 

I just wanted to update you all- today my application was approved!!
Not for the house I fell in love with- for one that I honestly didn’t think I would get- for one, we arrived with 2 minutes to spare (so many opens on at the same time!) and I overheard the real estate agent telling the tenant that they’d be organising more open inspections this week due to popularity.
So I thought no way do I have a chance here.. but I handed in my application and didn’t even give the house a second thought.
Almost had a heart attack when I got the phone call today!
I am so relieved and so happy and feel incredibly lucky!
Thank you all for taking the time to read my posts and share your knowledge and insight! Much appreciated

 

Well done for coming back and updating everyone. Good luck with the move.

 

Well done - another tip in that type of market is offering to pay rent in advance or of course above market rent if you really love it.

 

Congratulations. I hope you will be very happy living there.