How to get a rental application approved

Regional Queensland real estate agents have revealed their tips on applying for a rental in the “new normal” of tight rental vacancy rates and soaring prices.

Tight vacancy rates of around 1 per cent have become the new normal in the rental agency.

Tenants with double income and a flawless rental history are the top running tenants as low vacancy rates across the state as rental spikes in the hundreds of dollars force new class divides

The Real Estate Institute of Queensland have called the 1 per cent vacancy rate across Queensland the new normal for the rental market, as margins only moved between 0.1 - 0.2 per cent this quarter, with Toowoomba sitting between 0.4-0.8 per cent for the last three years.

In regional areas, this is particularly pronounced as the Queensland government works to address a housing stock shortage, particularly for social and affordable housing.

Success Realty Principal Angela Harms and Hot Property director Jacob Carlile said the quality of applicants is an significant factor in getting a rental occupied.

And these tenants that are drawing the short end of the stick, with real estate agents and property owners favouring families or couples with a double income and a spotless rental history.

With 440 rental properties across Toowoomba, principal of Success Realty Angela Harms said that the “calibre of tenants presenting for houses is the biggest challenge” for filling vacancies.

“Traditionally the busiest period is between November 15 and January 15, as defence workers, teachers and medical professionals tend to relocate,” Ms Harms said.

“Last year it just didn’t kick off,” she said.

“People just seem to want to stay where they are rather than swap or move,” she said.

But the movements aren’t so easy to gauge and Hot Property director Jacob Carlile said one luxury property they put up this week had about 20 applicants.

“We were filing doctors and solicitors and nurses and teachers and just really good quality applicants that anyone would be happy to get their hands on,” he said.

On the other hand, owners with houses or units on the lower end of the spectrum, from $300 a week, are happy to wait until a good quality applicant comes along, he said.

Rental prices spiked around this time last year, and the last quarter has seen a slight drop to more stable rental prices, he said.

“You can’t get away with pricing something above what it is worth anymore,” he said.

75-year-old Robynne Charlton is about to face homelessness after her 25-year rental home was sold. She is hoping to find other mature single women to share a house with, Monday, November 4, 2024. Picture: Kevin Farmer

Across Toowoomba rental prices have increased $100 - $200 a week since the same period in 2020 with a poll showing The Chronicle readers pay between 30-60 per cent of their income on rent.

Rental prices have particularly hit single pensioners hard.

Pensioner Robynne Charlton is facing homelessness after her rental of 25 years was sold and her rent doubled with the new lease ($400/week) offered to her.

Only able to afford $300/week in rent on her pension, Ms Charlton is currently looking for someone to move in with who is in similar circumstances.

Ms Harms said she has suggested this to a number of pensioners who are no longer able to afford rent.

“If rent goes up from $300 to $380 it just increases their financial stress,” she said.

Sharing a three-bedroom duplex with one other person is becoming their reality and in many cases their only option, she said.

Financial stress is also edging towards investment property owners, Mr Carlile said, with some owners telling him they’ll have to sell if interest rates go up.

“They’re paying money out of their own pockets to keep the property afloat and if they have a hot water system replaced or have an insurance claim or something - it can really push them over the edge,” he said.

Top tips for rental applicants

1) Well-prepared applications, rental history complete and references notified and responsive.

2) Double income earners with a flawless rental history.

3) No rental history in arrears.

4) Applicants are suitable for property (i.e. families applying for 3-4 bedroom houses, rather than 2 bedroom units).

Best suburbs to rent

Mr Carlile said rentals east of the railroad in Toowoomba tended to be more popular, but what mattered most was well-presented rentals with air conditioning and dishwashers, no matter where they were located.

The Agency new business partner Chanel Clark said they had a vacancy rate of zero.

This week one property had eight applicants within four days of the first inspection and would be under lease within the next week, she said.

Ms Clark said the four-bedroom, two-bathroom, two car parks were most popular, particular in school catchments suburbs of Glenvale, Highfields and Middle Ridge.