by Rama Sanders
Before you start searching for an apartment to rent like apartments for rent in abilene tx, it’s important that you understand your budget and know the weekly or monthly rent payments you can afford. If you fail to do so, you could end up getting “blacklisted”, which will make finding future rental properties even harder.
If you’re sensible about what you can afford and looking in the right market, finding an apartment rental in Australia doesn’t have to be a headache. Property comparison websites make finding a rental near me straightforward, with pricing one of the many filters you can use to target your search results.
How much should you spend on rent?
As a rule of thumb, you shouldn’t be spending more than 30% of your income on rent. If you’re spending more, it’s considered an indication of what’s known as “housing stress”. When calculating how much you should be spending on rent, figure out the net income (after tax) of everyone who will be contributing towards the rent. Divide this by 52 (the number of weeks in a year), then multiply it by 0.3.
For example, if you earn $52,000 a year after tax, then your weekly net income is $1,000 and you shouldn’t be spending more than $300 a week on rent. If you’re renting with a partner or with flatmates in a share house, then you only apply the 30% rule to your portion of the rent. For example, if the rent is $520 a week and your share is half (ie. $260), then you need to be making at least $866 a week (after tax) to be financially comfortable.
Know your market
The amount of money you spend on rent in Australia will depend largely on the city or regional area you live in and the suburb where you want to reside. If you want to be in the inner-city area of Melbourne or Sydney, then you’ll be paying considerably more in rent than you will be if you’re renting in the outer suburbs of Adelaide or Perth.
While you might think that regional towns are going to be a more affordable option, it really depends on where you’re looking. Many of Australia’s coastal towns have a high demand for holiday rentals and short-term accommodation, which means that long-term rental properties are hard to come by (and expensive). Finding affordable rentals in mining communities can also be tricky, with high demand and low supply pushing prices up.
Consider other expenses
When figuring out how much you should be spending on rent each week, think about the other expenses you have in your daily life and determine your weekly budget. Aside from groceries, phone and car registration/insurance, you might also have a gym membership and/or streaming subscriptions that you’re paying on a regular basis.
When figuring out how much you can afford to pay on rent each week, you also need to take into account the additional expenses associated with moving into a new rental. These may include paying a bond or security deposit, hiring removalists and furnishing your new home. Remember, the bond will only be returned if you leave the property in the condition that you found it and meet all of the requirements of your tenancy agreement.
Meeting Australia’s 100-point check
When you apply to rent a house or apartment in Australia, you will have to meet the 100-point check when it comes to providing personal identification. Basically, you will have a choice of various pieces of ID (such as a driver’s license, passport or utility bill), each of which is worth a certain amount of points. To apply for a rental, you need to provide enough documentation to meet a minimum of 100 points.
Additionally, you may need to provide proof of your employment and/or verification of your income to show that you can cover the rent. Some agencies and landlords will also ask that you provide a recent credit check report indicating that you don’t have any unsettled debts.
Renting in Australia as a foreigner
If you’re moving to Australia and looking to rent as a non-citizen, it’s relatively straightforward, provided you have enough documentation to satisfy the agent or landlord’s needs. Most want to see references from previous landlords as proof that you are a reliable tenant. That being said, they may not want to be making international calls to verify references.
If possible, have something in writing from a trusted rental agency and provide an email address so the Australian agency or landlord can contact them. If you haven’t rented before and don’t have a reference from a landlord, consider getting a character reference from an Australian-based employer instead.
