In a tough rental market, there’s one secret weapon that really matters – a solid rental history.
For those who can display a good history of timely rental payments, long tenure, and a great working relationship with property managers, it can be the key factor that sees a rental application stand out from the crowd.
So what is a good rental history and how can it help get your foot in the door when it comes to both renting and owning a property?
The power of a good rental history
While identification, personal references and proof of income are all required as part of any rental application, a great rental history is the standout feature that can really help get your application across the line.
This history is the element that demonstrates what type of renter you are, including:
- Whether you make rental payments on time
- How well you look after the property
- If you’ve ever breached a rental agreement
- How well you work with property managers
And, interestingly it’s not just when you apply for a rental property that this history comes into play. It’s also a little-known fact that a good track record of making rental payments on time can also help you secure a property home loan when it comes time to buy a home.
Basically it indicates to a lender that you honour your financial commitments on time, every time, making you a safer bet if they offer you a loan.
How it’s determined
When you lodge a rental application, you will be asked to provide the contact details of one or two previous property managers along with the addresses where you resided and for how long.
The property manager assessing the applications will then reach out to the previous rental agency, asking for a reference.
This reference seeks to determine what type of renter you’ve been, including whether you pay rent on time, how well you look after the property, and more.
And this reference is important. It allows the property manager assessing the application to glean an insight into whether you’re likely to be a great rental candidate for a home, and it can be the determining factor that sees your application at the top of the pile.
What if you don’t have a rental history?
While a great rental history helps when it comes to getting your application across the line, there are of course people who won’t have one simply because they haven’t rented before or it’s been a long time since they did.
The absence of a rental history is not a deal breaker. Instead, it pays to furnish your application with personal references and other indicators that are testament to your character and ability to meet your rental obligations.