The Top 3 Reasons Your Application Wasn’t Approved
In today's rental market, navigating the process of securing a property has become increasingly challenging. Across major cities in Australia, a perfect storm of factors—government policies, increased migration, and less new housing supply than required —has precipitated a rental crisis. The result? Demand for quality properties far exceeds the available supply.
Week by week, the landscape shifts, but one constant remains: the struggle for prospective tenants to stand out amidst a sea of applicants. In popular suburbs, where demand is particularly intense, what used to be a handful of prospective tenants vying for a property has transformed into a crowd of ten or more. Compounding this challenge are new application platforms designed to streamline property manager workflows by prioritising what they deem as the 'best' applications. In such an environment, it's no surprise that rejection or complete silence follows many rental applications.
Here, we delve into the top three reasons your rental application may have been unsuccessful, shedding light on why you may have faced rejection or heard nothing back at all.
1. Failure to Inspect the Property in Person:
One common stumbling block in the rental application process is the failure to physically inspect the property or send a representative, such as a relocation agent, on your behalf. Property managers and landlords often view this as a red flag, as it raises concerns about the likelihood of potential issues arising post-lease agreement.
When faced with a plethora of applicants, property managers tend to favor those who have personally viewed the property or engaged a relocation agent. This preference stems from the desire to mitigate the risk of tenants reneging on the lease due to unforeseen dislikes or requesting modifications, which can significantly increase a property manager’s workload and landlord’s expenses.
2. Rental Affordability Concerns:
A crucial metric in evaluating rental applications is the proportion of the annual rent to the applicant's annual household income. Generally, property managers adhere to the guideline that annual rent should not exceed 30% of household income—a rule aimed at safeguarding tenants' financial stability. Exceeding the 30% threshold increases the risk of tenants struggling to meet rental payments, prompting property managers to opt for less risky applicants.
3. Property Already Leased or Pending Approval:
Timing is everything in the competitive rental market. Even after a tenant has been approved property managers may continue hosting inspections until the lease agreement is finalised and first months rent paid. There is always a chance the successful tenant may change their mind and it’s vital the property manager has another option to ensure vacancy periods are minimised. We also often find that with property manager’s busy workloads it can sometimes take them up to a week to remove a listing online so even though it appears ‘available’ it could already be leased.
Attending the initial inspection is paramount and as relocation managers we also always touch base with our contacts within the agency to see where they are at in the leasing process. This ensures we are not inspecting anything that we have minimal chance of getting an approval for.
Conclusion:
While these are our top three reasons for rental application rejections, it's essential to recognise that each application is unique, and additional factors may come into play. However, by understanding these common pitfalls and taking proactive measures, you can increase your chances of securing your desired home.
If you're facing challenges applying for properties remotely please don't hesitate to reach out to us. With our expertise, our clients are approved, on average, within two weeks. Let us help you navigate the competitive rental landscape and find your ideal home before you arrive.