FAQ"s - Renting a Property in Sydney

FAQ’S on Sydney’s Real Estate Market

“Are there a lot of properties available in the market?”

Sydney’s vacancy rate is currently 1.4% (a 3% vacancy rate is considered stable) so the number of properties available meeting budget and other criteria is often small, reducing both choice and negotiating power on rents & terms for tenants. There is a higher selection of average standard apartments in busier locations and a moderate selection in sought-after locations with a higher standard. There is low availability of houses – particularly 3 bedrooms and more. Not always. Because the market moves so quickly, often properties that have just been leased or an application accepted are still on the websites. However, the quick ‘turn around’ with properties does have the benefit of new properties coming onto the market fairly regularly. “Are the rents I see online accurate and can I expect to negotiate on the asking rent or terms of the contract?” Rents are advertised in weekly amounts, are generally set to meet market conditions and there is usually not a lot of room for negotiation to reduce the rent. In Sydney, all leases are standard with some additional terms that the agents and landlords add to include the rulings of the building or specific requirements of the landlord. Normally the only terms of the contract that can be negotiated are the length of lease and whether a pet is allowed or not. Our Consultants can advise in each circumstance. “Are the properties I see listed as available online up to date? “

“What is the typical lease length?”

The trend is towards 1-year contracts, with an option to renew at the end of the 12-month term. In some circumstances tenants can commence with a 6 month lease and in certain situations a 2 year lease can be preferred by a landlord however it is not common.

“What are the additional costs associated with renting a property in Sydney?”

To secure the property after the application has been approved, the agent will ask for a payment of at least one week’s rent. This will be credited towards the rent that is due. Rent can be paid either 2 weeks in advance periodically, or monthly. Tenants will also need to pay a 4 weeks’ rent security bond that is payable to a Government body. Additional costs are utilities such as electricity, gas, internet, cable TV, phone and in some cases water charges.

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“What do I need to complete an application?”

+ A copy of your driver’s licence, passport and visa + A copy of your letter of employment + A written reference (if you have previously rented) + The details for an HR contact who can give a verbal reference and confirm your employment + Copy of pet references if planning on bringing your pets “If I see something I like, is my application likely to be successful (all things being considered)?” There are usually many prospective tenants wishing to inspect properties and often multiple applications for one property. Complete the application form carefully and thoroughly, do not miss anything out.

“Will we work with one real estate agent (realtor) to find a house?”

No, there is no ‘multi-listing’ in Sydney; instead landlords usually list their property exclusively with only one real estate agent. There are hundreds of real estate agents each with their own rent roll and website; all of them also advertise their property vacancies on one or two of the major real estate websites. There are no exclusive lists of properties available to relocation agents.

“Do I have to pay the agent a fee?”

No, there are no tenant fees paid to the Real Estate agent or the landlord. Real Estate agents do not actively search and find rental properties for prospective tenants other than what their own office has on offer. The landlord pays a success fee of approximately two weeks’ rent to the real estate agent.

“Is there a standard contract?”

Yes, the lease contract is a standard document complying with the Residential Tenancies Act and Regulations 2010 and any alterations or additions must not contravene the terms of the Act. “I’m bringing my pet to Australia, will this be a problem in finding somewhere to rent?” Pets such as cats and dogs need to be approved by the landlord. Most apartments have regulations that do not allow any pets and many landlords of houses are reluctant to accept a dog and may select another applicant without pets. Some landlords may ask for additional documents such as references, vaccination documentation, background checks, etc

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“Are the advertised properties furnished?”

Unless a property specifically states that it is furnished in the ad, each advertised property is unfurnished. They will include light fixtures, often they include wardrobes, mostly all window blinds or curtains and kitchens are equipped with a stove, oven. Normally, refrigerators and washing machines are not included in the property. “Can I ask for improvements to be made?” Properties are rented as shown - i.e. re-painting or other improvements are not usual between tenancies. “What value can my Consultant provide in house hunting?” We use our experience, knowledge and relationship with the agents to select and guide on the areas and housing we believe best meet your requirements. When we undertake a home search we arrange for private inspections of appropriate properties at a mutually convenient time. An accompanied home search day usually requires two days for your consultant to prepare: including searching for properties that meet the criteria and checking the data and photos provided to ensure a reasonable match with your stated needs, then telephoning the listed agent for each of the properties which could be between 15 – 40 calls. On many occasions the agent needs to speak to a current tenant first as they need to agree to access and this is not always forthcoming. “How quickly will I find somewhere to live?” Because of the tight market place, once you start looking, you will probably find you need to make some compromises on your ‘wish list’, however most of our clients have selected and settled on a home within 2 – 4 weeks of their arrival. Landlords expect an agent to lease the property again immediately; therefore, prospective tenants can feel pressure to decide quickly on a property. “How many properties can I expect to see in a day with my Consultant?” Dependent on your criteria, the day out is usually for about six hours inspecting 6-8 properties.

2020 - 2021© Dwellworks, LLC