Navigating the Australian Rental Market: Tips for International Relocators
Moving to a new country is an exciting yet challenging endeavour, yet securing suitable accommodation is often one of the major hurdles that international relocators face. Australia's rental market, with its unique nuances and high demand, can be particularly daunting for those moving from overseas. In this comprehensive guide, we'll provide valuable insights and tips to help international relocators navigate the Australian rental market with confidence and ease.
Understanding the Rental Market:
Before diving into the rental market, it's essential to have a basic understanding of how it operates in Australia. The rental market in Australia is characterised by high demand, particularly in major cities like Sydney, Melbourne, and Brisbane. Rental prices can vary significantly depending on factors such as location, property type, time of year, and market conditions. Additionally, landlords typically require tenants to sign a lease agreement, which outlines the terms and conditions of the tenancy, including rent amount, duration, and responsibilities. A typical lease starts out on a 12 month fixed term, then continues on a month-to-month agreement after. Properties are usually listed 1-4 weeks before their vacancy date, and landlords are looking to minimise the time the property is vacant. To secure a property, one needs to have funds ready to pay for the holding deposit, bond and a month’s rent in advance.
Budgeting and Affordability:
One of the first steps in navigating the rental market is establishing a realistic budget. Take into account not only the monthly rent but also additional expenses such as utilities, transport, daycare or schooling costs (which can be quite costly for those on temporary visas) and any potential rental increases. It's advisable to allocate no more than one third of your total household income after tax to rent to ensure financial stability and avoid rent stress. Landlords typically won’t approve applicants beyond this number, however there are exceptions to this in some cases. Your income is not just your salary, but also includes bonuses, commission and income generated from investments or other businesses. If you own a property in your home country and receive additional income through leasing it out, it is important to request proof of this income from your real estate agent and mortgage broker.
Researching Rental Locations:
The next step in navigating the Australian rental market is researching potential rental locations. Factors such as proximity to work or school, public transportation options and amenities, as well as lifestyle preferences are important to take into consideration. If you are wanting your child to attend a particular state school, you will need to rent a property within that school’s catchment area in order to enrol. Another deciding factor when choosing a location is public transport access to your workplace, as parking is often very expensive in the major cities.
Searching for Properties
Vacant properties can be searched for on realestate.com.au and domain.com.au. Properties listed on other websites are often out of date or archive listings. Often, it looks like there are a large number of properties available, however a lot of them have already been taken. While it is illegal for agents to leave a listing on a website without stating a deposit has been taken, it is still quite a common occurrence, as there is no regulatory body enforcing this law and it increases exposure for the agency. If a property does not have any inspection times listed, it is often because it has already been taken. The rental market is extremely hot at the moment and vacancy rates are at an all time low. Most properties are leased within a week, if not less.
Preparing a Strong Rental Application:
In a competitive rental market, your rental application makes all the difference in securing your desired property. In Australia, agents will not process your rental application unless you or a third party has viewed a property on your behalf. This is where using a relocation agent comes in for those wanting to secure a property they can move straight into when they arrive. In today’s highly competitive market, leasing agents are receiving huge numbers of applications for each property, so it is vital to ensure every single essential document is included in the application. Missing documentation or important contact details (such as those from previous property managers or references) often results in your application being simply discarded due to the vast number of applications received. Your cover letter has also become increasingly important as it allows you to introduce yourself and highlight why you would be an ideal tenant for the property. Unfortunately, not all real estate agents use the same platform to submit applications. There are four main application platforms, and some agents use their own application forms. Uploading the documentation and filling out all the details is a tedious process, however it must be done immediately after an inspection to ensure the application is passed on to the landlord for consideration. A relocation agent can assist you in putting your application together and ensuring you provide everything required.
Flexibility and Open Mindedness:
Flexibility is key to securing a rental, particularly for those who need to be settled by a certain date or for families coming from overseas where only one party has a job secured. It’s a harsh reality, but it is important to be aware that you are in competition with other applicants who likely have a dual income and an Australian rental history. The market is extremely competitive at the moment, so depending on your situation, you may have to view your first rental property as a “stepping stone” which allows you to move and get yourself settled, before moving into something nicer after finding your feet. Those who have flexibility on their arrival date and a larger budget have the luxury of being fussier on what sort of property they would like to secure.
Know Your Rights and Responsibilities:
As a tenant in Australia, it's essential to be aware of your rights and responsibilities under the relevant tenancy laws. Familiarise yourself with the Residential Tenancies Act specific to your state or territory, which outlines key regulations regarding rent increases, repairs and maintenance, bond payments, and termination notices. Knowing your rights will empower you to advocate for fair treatment and resolve any disputes that may arise during your tenancy.
Seeking Professional Assistance:
If navigating the rental market seems overwhelming, or you are wanting to secure a property to move straight into when you arrive in Australia, consider seeking professional help from a relocation consultant. These professionals can provide valuable guidance and support throughout the rental process — from suburb advice and property search, to application and lease negotiations. Furthermore, you’ll save a large sum of money on temporary accommodation than if you went it alone.
Navigating the Australian rental market as an international relocator demands a comprehensive understanding of its dynamics, coupled with flexibility and resilience in the face of stiff competition and evolving rental opportunities. From researching effectively to preparing a strong rental application, each step is integral to securing suitable accommodation in your new country. Seeking professional assistance, particularly from a relocation consultant, can streamline the process and provide invaluable support and expertise, allowing you to navigate the complexities of relocation and transition with ease.
