The do's and dont's of renting for the first time.
February 8th 2008 03:32
Renting is hard a thing to do, especially when it is your first time. I watched my friends go through it, and i went through it myself. It's confusing, you have to deal with a lot of people, go through a lot of paper and not to mention the money!
Let me give you some background. When i watched my friends start renting for the first time, i decided it looked very confusing, so i took a real estate course, i thought it would be a good idea to get acquainted with the buisness that would eventually rent out to me and sell me my first home. I was right. But ofcourse not everyone can do this, so instead i went out and did the research for you, i talked to real estate agents, the department of housing and first time renters to come up with a detailed guide to renting for the first time.
When renting a lot of people think the first step should be finding a place to rent. Well not always. Margie, from L.J. Hooker thinks that for young people the first step should be finance. "Young people often think they have more money than they do, and so when they rent they get a rude shock when all their money dissappears and their bills are still there." Margie says. So young people, check your finances. Get your money in order, whether it be with centrelink or your job, make sure you have enough money to get you through.
Next you have to find an affordable place to rent. Real estate Agent Christine, says the best way to do this is to come on in. Go to your real estate agent and ask them. They have the best knowledge on properties in your area, and they are very willing to help. "We have rental lists, and there is always a person who is willing to drive you out and show you the properties personally." Christine says.
When you have found the right place for you the next steps become a little confusing. Ok so you've found the perfect place, but it's just a little out your price range, who can help? The best place i found, was to go to the department of housing. They have a little scheme called rent start. It's designed for people who are on a low income and are trying to rent for the first time. The basic idea is that they help you pay your bond, so you can save for the rent to come. Still confused, chek out their website, www.housing.nsw.gov.au
If you dont have a problem with money, your next step will be filling in paper work. The real estate agent will give you an application form, which you will have to fill in and hand in along with id, refrences and an income statement. "Usually we ask for 100 points of id, but if your a first time renter, this isn't possible, so we get as much as possible. This includes a drivers liscence, income statement, and any previous work details." Margie explains. "Also we like to get a couple of refrences, not family or friends, but usually work colleagues or neighbours." Once the application is complete you hand it in and the agent will pass it on to the landlord. Now there is no descrimination when it comes to age, but sometimes a landlord is resistent towards letting a young person rent their place, so they might start you out on a 3 month or 6 month lease, instead of the full year, and if everything goes right, there is nothing to say you wont be able to renew the lease at the end of term. Erin, a 17 year old girl who recently rented for the first time said, "I was knocked back for the first place i applied to, but i didn't give up. And then i found the most perfect place for me, i applied and i got it. The department of housing helped me out heaps, they paid half of my bond, so i could manage the rest. Im on a 6 month lease, but i plan to renew it when it finishes."
Once you've gotten the place you want, you will be asked to sign a residential tenancy agreement. This is a binding contract, and should be taken very seriously. It will state how much rent you will be paying, how often you will be paying it, and that you take responsability for any damages that occur to the place while you are living there.
Now back to the fun stuff. What not to do. According to my local real estate agents, the biggest problem tht arises with first time renters is sharing. "Young people think it will be easier to share with someone, the rent is cheaper and the chores are shared. But what they dont realise is that sharing isn't that easy. Usually, one person stops paying rent, or they realise they dont actually want to live with this person. I see it all the time, they come in and want out of the contract, but it just cant happen. Then one person gets stuck carrying the other tenant, and paying both shares of the rent." Christine says.
So it's not a no go, but if you are going to share, pick carefully and make sure they can pay their share of the rent.
The other big problem? Margie thinks it's controlling the cash flow. "Young people tend to spend their money before they even have it, and this can cause all sorts of problems. Here at L.J. Hooker we have a plan called centrepay. This is a scheme that has proven itself very successful. What happens is that the rent is taken straight out of their account before they even see it. This can organised with centrelink or your boss. It costs the landlord 99 cents for each transaction, but it's a guarantee. Plus it takes some of the responsability off the tenant."
Renting can be difficult for everyone, whether you are starting out, or have done it a million times. But it doesn't have to be a stressful activity, as long as you are organised, it can be relatively simple one.
I hope this is helpful, if you have any other questions about renting, or the department of housing, message me or email me at bulma_brieftrunks@homtail.com
Let me give you some background. When i watched my friends start renting for the first time, i decided it looked very confusing, so i took a real estate course, i thought it would be a good idea to get acquainted with the buisness that would eventually rent out to me and sell me my first home. I was right. But ofcourse not everyone can do this, so instead i went out and did the research for you, i talked to real estate agents, the department of housing and first time renters to come up with a detailed guide to renting for the first time.
When renting a lot of people think the first step should be finding a place to rent. Well not always. Margie, from L.J. Hooker thinks that for young people the first step should be finance. "Young people often think they have more money than they do, and so when they rent they get a rude shock when all their money dissappears and their bills are still there." Margie says. So young people, check your finances. Get your money in order, whether it be with centrelink or your job, make sure you have enough money to get you through.
Next you have to find an affordable place to rent. Real estate Agent Christine, says the best way to do this is to come on in. Go to your real estate agent and ask them. They have the best knowledge on properties in your area, and they are very willing to help. "We have rental lists, and there is always a person who is willing to drive you out and show you the properties personally." Christine says.
When you have found the right place for you the next steps become a little confusing. Ok so you've found the perfect place, but it's just a little out your price range, who can help? The best place i found, was to go to the department of housing. They have a little scheme called rent start. It's designed for people who are on a low income and are trying to rent for the first time. The basic idea is that they help you pay your bond, so you can save for the rent to come. Still confused, chek out their website, www.housing.nsw.gov.au
Once you've gotten the place you want, you will be asked to sign a residential tenancy agreement. This is a binding contract, and should be taken very seriously. It will state how much rent you will be paying, how often you will be paying it, and that you take responsability for any damages that occur to the place while you are living there.
Now back to the fun stuff. What not to do. According to my local real estate agents, the biggest problem tht arises with first time renters is sharing. "Young people think it will be easier to share with someone, the rent is cheaper and the chores are shared. But what they dont realise is that sharing isn't that easy. Usually, one person stops paying rent, or they realise they dont actually want to live with this person. I see it all the time, they come in and want out of the contract, but it just cant happen. Then one person gets stuck carrying the other tenant, and paying both shares of the rent." Christine says.
So it's not a no go, but if you are going to share, pick carefully and make sure they can pay their share of the rent.
The other big problem? Margie thinks it's controlling the cash flow. "Young people tend to spend their money before they even have it, and this can cause all sorts of problems. Here at L.J. Hooker we have a plan called centrepay. This is a scheme that has proven itself very successful. What happens is that the rent is taken straight out of their account before they even see it. This can organised with centrelink or your boss. It costs the landlord 99 cents for each transaction, but it's a guarantee. Plus it takes some of the responsability off the tenant."
Renting can be difficult for everyone, whether you are starting out, or have done it a million times. But it doesn't have to be a stressful activity, as long as you are organised, it can be relatively simple one.
I hope this is helpful, if you have any other questions about renting, or the department of housing, message me or email me at bulma_brieftrunks@homtail.com
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