How to rent an apartment or house in Australia: a guide for foreigners

Renting a home in Australia as a foreigner isn’t the easiest thing to do. However, it’s not impossible, and many people who had come for the first time have succeed with their applications.

The term “lease” refers to obtaining a rental property under a contract for a specified period.
Having a rental history in Australia is important, but it’s not impossible to apply without one. Many newcomers to Australia refrain from applying for a lease due to lack of knowledge, thinking the process is too difficult, or simply feeling they don’t meet all the requirements, not realising they may have just as good a chance as others.

In this post, we will show you all the key aspects to consider before applying for a rental agreement, as well as tips to help you secure your housing in Australia. Don’t let a lack of experience hold you back!

Let’s take a look.

Where do I start looking for properties?

There are listing websites in Australia where real estate companies advertise their apartments or houses for rent; the most famous are realestate.com.au and domain.com.au.

To navigate these websites, you need to register and select the 'rent' option, then set up your filters. For example: What area are you interested in? How many bedrooms you would like? What is the minimum or maximum price you’re willing to pay?

Select the ones you like and check when they are available for inspection.

Real estate companies are independent agencies that act as intermediaries between the landlord and the tenant for all types of communication. However, the final decision on who will live in the property rests with the owner.

There are also groups or communities on Facebook that offer the opportunity to take over rental contracts, but this is another topic we will expand on in a future article.

Going for an inspection

Once you’ve found a property you like, the next step is to visit it; in Australia, this is called an 'inspection'. Sometimes you will find property listings that show when the apartment/house is available for inspection and the date it can be moved into. In other cases, you need to contact the agent to set up a day and time.

It’s important to see the house in person because sometimes the photos look better than the actual condition of the house.

Keep in mind that you won’t be the only one at the inspection; depending on the location, many other couples or families may attend, sometimes up to 50 different people. If you see this, don’t get too discouraged; remember, it’s a very competitive market.

After the inspection, if you really like the place and can imagine living there, the next step is to apply. Remember to ask questions about the length of the lease, when it will be available, and the payment requirements (which can vary between properties).

Ok I found one I like! How do I apply?

Applications are generally online; however, I recently came across an agent who still used a paper form to apply for a property. This is unusual, and the main reason is that you won’t want your information floating around after applying.

In the application, you will need to provide personal data and documents such as your passport, visa type, and duration. The agency will also ask you to submit your bank statements, rental history in Australia, and references.

Included in the list are the Medicare card (which is the health card only available to temporary and permanent residents in Australia) and the Australian driver’s license.

You might be wondering, if I’m a foreigner, how can I have these documents? The reality is that if you are newly arrived, there’s no way for you to have them. You can apply with the documents you have; however, real estate agencies tend to give more weight and attention to documents issued in Australia. So, if you can obtain an Australian driver’s license, that would be ideal to strengthen your application—having more supporting documents will give you more points.

There will be many people applying for the property at the same time as you, so by simply submitting the form does not guarantee you will secure the property.

What do you need to close the deal?

If you are selected, the agency will formally offer you the property, and if you still want it (you may have applied for several), they will send you a contract. You need to carefully review and examine all the components of that contract.

The contract will detail:

• The length of the lease

• the bond amount

• the payment schedule (date & frequency rent is due)

• the initial rent payment amount

• the date you will take possession of the property

When you go to sign the contract, you will need to have the following things with you:

• The money ready to pay the initial payment (normally one month’s rent in advance).

• The money to pay a deposit or bond: generally, this amount is equivalent to four weeks' rent. This bond acts as a security deposit in case you cause any damage to the property. At the end of the contract, the agency holds that money as backup to cover any damages (if both parties agree). If there is no damage to the property, your bond will be fully refunded.
  Legally, the bond must be registered with an independent government body called the RTBA (Residential Tenancies Bond Authority), which is responsible for holding the bond during the duration of the rental agreement.

• Signature of the contract. Nowadays, they send the contract through DocuSign, and you can sign online.

The property may be available immediately, but normally it will be a few weeks before you can get the keys. The contract will specify the date the property becomes yours, and the agent will normally schedule a meeting for that day (if its not the day you sign on).

What happens on the day I get the keys?

The most important thing you need to do as soon as you take possession of the property is review the condition report. This is a (normally very long) document that shows the condition of the property as the agent has assessed it before you move in.

If there is any existing damage in the apartment, it is your responsibility to make a note of this in the condition report. If its in there already, thats fine, but if its not you need to add it in.

This is important, because the cost to repair any damage to the property that is not on the initial report could be deducted from your bond when you move out.

The condition report is normally given to you on the day you take the keys from the agent, and has to be completed and returned to them within a certain time period - normally one week. Its easiest to complete this before you start moving your furniture & other possessions into the property.

How can I improve my application?

Winning a lease is very competitive in Australian cities right now, so its important to do everything you can to make your application the best it can be.

The following tips have helped us in the past:

• Having stable employment. If your job is with a well-known company or the government, even better!

• If you and your partner are applying, that’s great!!! because you can show more than one income; this reassures the real estate agency, as they assume there won’t be issues with payments.

• The more Australian documents you have, the better, especially those that include your photo. It seems they value this more than any other document.

• Your salary range may also be a factor that interests landlords and can influence the final decision.

• Being organised in the way you demonstrate the funds in your account, for example sending your pay slips to show your monthly income, plus you can also show your savings account.

• Rental history is important, especially in the state where you’re applying. If you don’t have a rental history, consider having roommates who do.

• Notify your references that they will be contacted by phone or email as part of the selection process.

• If the market is becoming difficult, sometimes offering to increase the weekly rent can help you stand out among other applicants; again, this shouldn’t be necessary, but it can help if it’s your first rental.

• Some landlords prefer not to have pets in their apartments, mainly due to carpets. If you don’t have pets, it will definitely be easier to get approval for a place. However, after the pandemic, it became more common to have pets in apartments, but this will be mentioned in the listing on realestate/domain.

Summing up

Obtaining a rental contract in Australia as a beginner can be a time-consuming and challenging task, but there is plenty of evidence that it is possible.

By following these tips, you will have knowledge beyond the standard applicants, and you may secure a place for yourself sooner than you think.

Good luck!