Episode 2: Gen Y

How to Get a Good Rental Deal: Share vs. Going Solo

“If you’re not on a six figure salary, best not to think about moving in to your own pad,” says financial expert, Scott Pape. “Rental costs for one-bedroom apartments are not that much cheaper than two-bed models and you’ll be paying all the bills plus rent by yourself. Being trapped behind four small walls eating baked beans is far from a glamorous proposition.

“So your best options are to seek out share accommodation in the housing ads in the newspaper or to buddy up with a friend or relative and join the queue for rental properties.

“Renting hasn’t been so tough across the country for at least 20 years. Vacancy rates are down to record lows and long lines are forming at Saturday morning property inspections.

“In this tight market, you’ll have to do some extra work to win the keys from the agent.

Here are Scott Pape’s 13 tips for securing and maintaining a lease.
One foot in the door

1. If you are prepared to make allowances, you may find cheaper accommodation. A lack of off-street parking, communal laundry, or being located next to a busy road, can all lower the price (and competition) of a rental property.
    
2. References from previous landlords, or from employers if you are a first-time renter, are essential and will differentiate your application.
    
3. If you’re young, taking mum or dad along can work. Parents can also be useful as co-signatories on a lease.
    
4. Take the paperwork with you – bank account details, pay slips for proof of income and driver’s licence all help prove your identity and your ability to pay. Then you can fill out the necessary forms straight away.
   
   Understand the lease
5. A 12-month lease is a good option for stability (you know you won’t have to move at least for a year) and for avoiding rent hikes for the full 12 months.
    
6. You will be required to pay a bond, usually of four weeks’ rent, which must be lodged with a state-government agency.
    
7. Special conditions, an itemised inventory and a condition report should all be noted in the lease. Ensure these are filled out accurately to protect yourself when your lease expires.
   
   Power, water and phone connections
8. A landline connection usually costs $59.
    
9. Electricity and gas connections vary, but are often waived if you have an existing account and/or opt to pay bills by direct debit.
    
10. Tenants only have to pay for the water used, not the rates and services. Sometimes usage is not billed separately – in many apartments for example – in which case this amount is waived.
    
    Repairs and maintenance
11. The landlord is responsible for all necessary repairs. Contact the landlord directly or the agent. Generally they will have a list of authorised tradespeople who carry out work on their behalf. Sometimes you will be authorised to arrange repairs below a certain value. Always get a receipt for work you have been asked to pay for yourself, so you can be reimbursed.
    
    Inspections, problems and disputes
12. The lease will spell out when authorised inspections can take place, and the required amount of notice.
     
13. There are tenants’ bodies in each state that can be contacted if you have a dispute with your landlord.