What would you do to secure a rental property?

August 3, 2010 by Carolyn Boyd,

As featured in Talking Property,Domain

The Age Newspaper

It can be desperate times if you are looking to rent something. Especially when vacancy rates are dipping under 2 per cent in some areas, such as Melbourne's inner city and its outer reaches.

Even if you're not too fussy, tight rental vacancy rates in many cities means the situation can be dire. So it's not surprising that when we asked our readers what they had done to secure a rental property, more than one-quarter said they had offered more than the asking price, taking a punt that a landlord couldn't resist some extra income.

It seems if people find a house or an apartment they like, they are often pulling out all the stops to secure it. Other survey respondents told us they had payed the rent and bond on the day, completed their application before the open for inspection because it showed they were keen and ready to go, or buttered up the leasing agent, believing it never hurts to be friendly. Personally, the most ridiculous thing I've had to do is provide pet references for our two small dogs who aren't large enough to chew the big toe off the postman. My two ankle biters are another matter – but no references requested for them. Yet.

Looking around Australia, there's bound to be a vast chasm in how easy some tenants will be having it in their hunt for a home. As the below figures show, it's likely to be difficult in Melbourne, Sydney, Canberra and Adelaide, but a whole lot easier in Brisbane and Perth. But if mining returns to its previous highs, that could change too.

There's also news that investors are making a comeback to some parts of the market - for example in Sydney in the city's west and south west. That could help to ease the situation for some tenants by providing more rental properties. The other good news is first home buyers are expected to begin buying again soon, potentially freeing up some rental homes as well.

Vacancy rates around the country

Canberra; About 1 per cent, as of April, 2010

Adelaide; 1.03 per cent for the month of May.

Wollongong; 1.1 per cent in May. Up 0.2 per cent from the previous month.

Sydney; Overall 1.2 per cent in May, a fall of 0.1 per cent from the previous month.

Melbourne; Overall 1.5 per cent in May. Within 4kms of the CBD, 0.9 per cent in June, down from 1.6 per cent in May.

Outer suburbs 0.8 per cent.

Newcastle; 1.6 per cent in May, a fall of 0.3 per cent from the previous month.

Darwin; 2.5 per cent, as of April.

Brisbane; 3.9 per cent in the three months to the end of June. Within 5kms of the CBD 2.6 per cent.

Remainder of Brisbane 4.6 per cent.

Perth; 4.1 per cent in the three months to the end of March. This is a significant turnaround from March 2007 when the Perth vacancy rate plunged to just 0.8 per cent.

I decided to feature this article from The Age in it's entirety as it is often something which we come up against when we talk to Government and other Green Groups about living sustainably in rental accommodation. Most people still fail to grasp the sheer shortage of rental accommodation (let alone rental accommodation which is affordable and accessible to public transport). People sometimes ask us why people don't simply 'buy somewhere' and I struggle to respond in a way which won't be interpreted as rude. VCOSS's current Decent not Dodgy campaign further highlights the barriers experienced by renters in finding property which is healthy and safe. Chris and I have been in our current rental property for a number of years, and as people running a small business or three on a very low income,  we no longer fall into the gamut of desirable tenants despite being pet and child free with degrees and good work histories. Not a comfortable thought.

I've had a brief look over the election material of our three major parties in Australia. Labor seems to posit the solution to rental scarcity by developing regional areas and as someone who grew up in the country, I don't remember rental vacancies being all that available particularly in University towns such as mine where caravans were hired out by the University as student accommodation. Liberal policies seem to focus on housing affordability for homeowners but not much for renters. The Australian Greens has quite an extensive housing policy with attention to the needs of renters in public and private accommodation, sustainability and retrofitting to new urban developments and existing properties respectively and the need for property which is close to public transport and part of  a community. At Green Renters were are keen to lobby for the needs of renters. Whilst a lot of tenancy guidelines fall under the gamut of State legislation there is still plenty that our Federal government can and should be doing. We don't tell you who to vote for, but we encourage you to ask your local member or candidate about the following:

• Their policies on increasing the availability of rental accommodation
• Minimum standards for rental properties with regard to weather proofing, structural soundness, safety and environmental investments into the homes.
• Federal rebates and incentives for environmental improvements (the insulation rebates were a great idea in theory).
• Lobbying State government to introduce the option of longer term leases of 3-5 years as are the norm in other regional cities around the world.

I could go on, there are plenty of issues that will be at the forefront of this Federal election that will make an impact upon how are where we live: immigration, climate change, health, education.... if we can find somewhere to live in the first place!