What Makes Property Managers Say ‘no’ To Rental Applications

The role of a property manager is never easy, especially when it comes to assessing rental applications. In most cases, there are multiple applicants that could be approved for a property, but of course, only one applicant can get the approval.  

So, if you’ve been told “no, sorry you weren’t approved for the property”, you might be wondering why.  

Common Reasons Why Rental Applications are Rejected 

There are many reasons why your application may not be approved, so let’s take a look at some of them.  

Insufficient Income or Unstable Employment 

We know, particularly when rental prices are increasing, many tenants are finding that they are missing out on properties simply because their income isn’t quite enough, or their employment isn’t stable (seasonal employment or self-employment for example). Property managers need to ensure that tenants can afford the tent on an ongoing basis and that paying the rent isn’t going to place the tenant in financial hardship.  

As a rule, property managers look for tenants whose weekly income is at least three times the weekly rent, so it is really important to include all your income on your application. 

Poor Rental History  

We can’t stress how important it is to ensure that your rent is paid on time. A continuous history of late payments and long-term arrears can indicate a potential risk for landlords. One component of a reference check is checking your past rental ledger, and if a property manager can see a history of late rent, there’s a good chance your application will not proceed.  

Now, it isn’t just your payment history that comes into account. Property managers will also ask previous landlords or managers for an overview of what you were like as a tenant, which will include things like whether the property was kept clean, or whether breach notices were issued. Too many breach notices, and a poor history of keeping the property tidy can raise red flags when you are being compared to other potential tenants.  

Lack of Rental History  

Completely different to poor rental history, a lack of rental history often affects those looking for their first rental. While a lack of rental history won’t get you an automatic “no”, in a tight rental market it can make it a little more difficult for you to get approved, particularly when competing with potential tenants with long histories. If you find yourself in the situation of needing to rent without a rental history, or with a minimal rental history, it is worth asking the property manager if they would consider having a parent or grandparent go on the lease with you to provide a level of security.  

Insufficient References 

A big part of your application will be providing references for property managers to check. This will often include previous landlords or property managers to check your rental history, and your employer to confirm employment.  

If you don’t have rental references who can verify your reliability and your employment, your application may be rejected. Similarly, if your references provide negative feedback, your application may be placed at the bottom of the pile.  

When applying for a property, it is worth ensuring that the people you have put down as references will be available to take a quick phone call to minimise delays in processing your application.  

Occupancy Numbers 

In times when rental prices are increasing and the number of rentals available is shrinking, it’s common to look at sharing with friends and family members. But it is important to consider how many rooms are in the property, and how many people it is safe to have living there. If your application is, for example, for a two-bedroom unit, and you have five people on the application, a property manager and landlord may be hesitant to approve you due to occupant numbers.  

Incomplete or Inaccurate Application 

One of the things that will get your application rejected almost straight away in a tight rental market is an incomplete rental application or details that are inaccurate (such as income that doesn’t match up to your employment). Property managers and landlords rely on accurate information to make informed decisions when choosing between tenants. By not filling in the application completely or not putting in the correct information, you risk your application automatically being rejected.  

Behaviour and Communication During Rental Inspections  

A lot of people don’t consider that their behaviour and level of communication throughout the rental process plays a role in whether they are shortlisted for the property, but it can play a large role. It is important to consider how you communicate with the property manager, the staff member holding the open home, and other staff in the office. A bad attitude or rude behaviour may see you placed at the bottom of the list, even if you have an impeccable rental history.  

Current Rental Situation  

Again, this reason often affects tenants in a tight rental market. When there isn’t a lot of competition for rental properties, there can often be more leniency in move-in dates. When the market is tight, preference is often given to applicants who can move in by the required date.  

A Simple Matter of Numbers 

As we touched on, only one applicant can be approved for the property, so you may have simply missed out due to sheer bad luck. If you know that you don’t have any issues with your rental history or your income, it is worth taking the time to make a simple phone call and see why you didn’t get approved and if there may be another property you are suitable for.  

How to Get Approved for a Rental Property in Perth 

So now we’ve covered what can make a property manager say “no” to your rental application, what can make them say “yes”?  

The rental application can vary, so if you are moving to a new state or a new area, it is essential to understand what you need to provide.  

Prepare Your Documentation  

Fully complete the rental application and provide copies of identification documents, proof of income and rental and personal references. Ensure you go through the checklist of required documents, and if you aren’t sure on anything, a quick phone call is always a good option.  

Show Financial Stability  

Before applying for a property, it is essential to ensure that your income is sufficient to cover the rent. Most agencies work with a common guideline that rent should not exceed 30% of your gross income. If your income is irregular, consider having a guarantor to be a backup should you be unable to pay rent. Similarly, if your income doesn’t meet the 30% range, either consider a guarantor or look at other properties available.  

Be Prepared to Pay  

Before you apply for a property, make sure you have the financial means in place to pay a bond, which is generally equivalent to four weeks rent (there can be some changes to this depending on how much the weekly rent is), as well as two weeks’ rent in advance. If you have a pet, you will also need to be prepared to pay a pet bond if required.  

Show Good Rental History  

If you have rented previously, ensure you provide rental references or contact details from previous landlords and managing agents. You may also wish to include a copy of your rental ledger showing a history of on-time payments.  

For those who don’t have a rental history, consider if you have previously paid board to a non-family member who can provide a reference for you. You may also consider whether you have a work colleague who can act as a character reference.  

Presentation and Communication 

Good presentation will leave an impression on a property manager, so make sure you dress appropriately and professionally where possible when attending property inspections (we do understand if you are working and arrive in your work clothes), be polite and respectful, particularly if you are inspecting a home that is still tenanted.  

It is imperative to ensure that the real estate agency emails are on your whitelist to ensure you don’t miss email communication. If you do receive an email or a voicemail is left, respond promptly to help the application process keep moving efficiently.  

Rental Resume 

Rental resumes are becoming more popular among property seekers, and it can be a great way to both stand out against other applicants, as well as help the property manager get an idea of what you would be like as a tenant.  

Emphasise any factors that make you an attractive tenant - stable employment, good rental history, long term plans to stay in the area - and your references. If you have pets, this is a great place to outline your pets and whether they are indoor or outdoor animals.   

It is important to remember that different property management companies in Perth, as well as different landlords, have varying criteria and priorities when choosing a tenant, so the reasons for rejecting an application can vary from property to property. It is always worth asking the question around why you weren’t successful, as this may help you gain a property next time.  

If you’ve been looking for a rental property in Perth, or looking for an experienced team to manage your investment property, contact the friendly team at Thought Leaders Real Estate for a chat on how we could help you.