The Rental Property Market In Perth
Many new arrivals are often surprised by the cost of living in W.A. As with all states of Australia, the Perth rental market is very tight, with demand high, and vacancy rates at historically low levels. As there is limited supply of quality properties in the market and many prospective tenants for landlords to choose from, it is important for you to be aware of the high demand for properties, and be prepared to act quickly on any properties that you are interested in renting and applying for. Therefore, it is recommended that you apply for any properties that you are interested in on the day of your viewing and not wait until a few days later, as they could very well be ‘gone’ by then.
Inner city suburbs, western and coastal suburbs are highly sort after and the rental prices reflect this. These suburbs usually attract professional families and while the rental prices reflect this do be aware that these area’s have a large proportion of older character properties and older style kitchens that may not have been renovated. New buildings in these areas are becoming available however you do sacrifice room size and garden.
top ↑
What Inclusions are Standard in a Rental Property?
unfurnished properties:
Most rental properties in Perth are ‘unfurnished’, and unless stated otherwise you should always assume that the property will be unfurnished.
Unfurnished properties typically include an oven and cooking tops (these run on either gas or electricity), dishwasher (if property already has one) and curtains/blinds. Some form of heating is typically included in the property, and cooling/air conditioning may also be included with some properties. Unfurnished properties do not include appliances such as refrigerators, washing machines or clothes dryers. Please be advised that many properties advertised on the internet will show pictures with furniture etc., however, this does not mean the property is furnished and you should assume it is not, unless specifically stated otherwise.
furnished properties:
There are some fully or partially furnished properties available for rent. These are more common in the inner city areas. Fully furnished properties (or also referred to as furnished and equipped) typically include everything – all furniture, electrical appliances (fridge, washing machine, microwave, TV etc.), crockery, cutlery, and in most cases also bath towels & linen. Partially or semi furnished properties may include basic furniture items and appliances, but not crockery, linen etc. Expect to pay at least an additional $100 per week for a furnished property. The majority of both long and short term fully furnished places in Perth tend to be apartments. Furnished houses are not very common.
If you are relocating from overseas and there is a time lag between moving into your new property and your goods arriving in Australia, you may like to consider renting a rental furniture starter pack to cover you for the interim period. Furniture hire companies can be found in the ‘Shopping & Services’ guide.
top ↑
What are the Common Acronyms used in Real Estate Advertising?
BIR – Built in Robes (wardrobes that are included in the bedroom and cannot be removed)
WIR – Walk in Robe
OSP – Off Street Parking (not garage)
LUG – Lock Up Garage (for 1 car)
DLUG – Double Lock up Garage (for 2 cars)
Carport – Undercover parking but not enclosed
A/C – Air Conditioning (this may be ducted refrigerated, evaporative, or reverse cycle)
U/f – Unfurnished property
F/f – Fully furnished property
top ↑
What are the Typical Housing Styles in Perth?
There are a wide variety of housing styles to choose from in Perth from modern apartments and homes through to period style character cottages. External looks can sometimes be deceiving as many of the older style homes will be fully renovated and refurbished with modern fittings and fixtures. The rental price is a good indicator of what the condition of the property will be, and whether the property has been recently updated/renovated. Following is a sample of housing styles you will find in Perth:
Townhouse
A townhouse is usually at least two stories, and may share walls with the houses next door, depending on the complex. They often include a courtyard, or garden area.
|
Flats / Units
Often built in the 1960s and 70s
|
Villa / Unit
A villa unit is typically single story and often shares the block with other units. They also have a small courtyard or garden area.
|
Modern Double Story House
 
|
Modern Apartments
 
|
Period Style Homes / Cottages
Victorian Cottage
 
Edwardian
Californian Bungalow
Single Fronted Terrace
|
Modern Brick Home
 
|
Brick Vaneer
|
Weatherboard House
|
top ↑
top ↑
What is a Typical Lease Term?
Leases are typically for twelve (12) or six (6) months, with a 12 month lease being the most common. Six (6) month leases can be more difficult to secure, particularly in the tight rental market where many landlords prefer a longer term lease. You are more likely to be able to secure a shorter term lease on a fully furnished property. Please be aware that regardless of a lease term, the landlord/agent is permitted by law to review the rent amount at 6 monthly increments, although this is rare.
top ↑
Viewing a Property?
- It is important that any appointments with the real estate agent to view a property are arranged well ahead of time, approximately 1-4 days prior to your preferred viewing day. It is typically difficult to arrange viewings at the last minute/on the day, and viewings need to be arranged ahead of time.
- In some instances, a private appointment can be arranged, however, in the current market it is important to know that many real estate agents will invite other interested parties to attend the scheduled appointment time, so don’t be surprised if there are others viewing the property at the same time as you.
- In addition, most Real Estate Agents currently work with ‘OPEN HOUSE’ viewings – this means they set a time suitable to them and the current tenants (if the property is still tenanted) to open the property for viewing and inform all interested parties of the allocated time. This time may be advertised on the internet or needs to be confirmed directly with the agent. The agent may not open the property for viewing at any other time. Generally, the more desirable the property the more people attend.
- Viewings of standard properties are for 10-15 minutes, this may be longer for executive properties of more than $1000 per week.
- Do not use the toilet during a property viewing unless you specifically ask the agent for permission to do so. Many properties are professionally cleaned prior to a tenancy and the landlord does not want to have to re-clean the premises.
top ↑
How are Rental Fees Quoted & Paid?
- Rental fees are quoted on a per week (p.w.) basis.
- Rents however, are typically paid on a fortnightly (every 2 weeks), 4 weeks or monthly basis in advance. The agent will advise accordingly.
- To calculate calendar monthly rental fees, multiply the weekly amount by 52 (weeks) then divide by 12 (months).
- Depending on the agency, there are many options for payment of rent including bank cheque, credit card, electronic funds transfer or direct debit. Please allow sufficient time for money to clear.
top ↑
What is a Rental Bond?
- In addition to paying rent, at the commencement of the tenancy you are also required to pay a ‘Rental Bond’. This money is retained as security against any substantial damage that may be caused to the property while you are the tenant, or to cover any rent owning at the end of the lease. Accordingly, the bond is often referred to as a security deposit.
- The rental bond is typically equivalent to 4 weeks rent (in some instances 6 weeks rental may be required as bond, this is more likely if it is an exclusive property or fully furnished).
- The rental bond is submitted to the Rental Bond Board and held in trust until the end of the tenancy. Landlords/agents are required to lodge this money within 3 to 14 days of them receiving it. There is no interest earned on these funds during time it is held in trust.
- The full amount should be accessible at the end of the tenancy, when you may be entitled to a full or partial refund of this money. The bond will be returned to you in full at the end of the tenancy only if the property is returned in the same condition as when you moved in (fair wear and tear accepted).
top ↑
I Have a Pet – How Will This Affect My Property Options?
As you would expect, not all landlords are as enthusiastic about your pets as you are. Therefore, having pets will limit the properties available to you where a landlord will accept pets. You must advise that you will have a pet when applying for a property.
If necessary, it is recommended that you offer to pay an additional ‘Pet Bond’ in addition to the standard rental bond to encourage landlords to accept your pets, particularly if the animal is expected to be inside the property.
Another recommendation may be to put a pet C.V. together with pictures and information on your ‘pet’ to show the landlord what an important member of your family they are.
The Tenancy Agreement expressly forbids you to have pets in the property without the landlord's consent. If you have a pet, advise the agent and do not attempt to conceal the fact as this could create a problem for all parties.
top ↑
What Documentation is Required when Applying for a Property?
Once you find a property that suits your requirements, you will need to complete an Application for Tenancy and provide all of the requisite documentation. You will be required to provide the following information:
- Personal Details & ID – You will need to provide all your personal details, temporary address details, phone etc. You will also need to provide photo ID by way of a photocopy of your Passport or Drivers Licence (please bring a photocopy along with you on your home search day) for all adults applying for the property. You may also need to provide a copy of your residency visa.
- Employer Details – Company Name, Name & contact number for your Manager/Supervisor, Employment period (if less than 12 mths you may need to advise previous employer details), and your earnings.
- References – You will need to provide contact details for referees – email addresses are most useful if your referees are overseas.
- Option/Application Fee – The Agent/Landlord may ask for one (1) week’s rental fee deposit to reserve the property while your application is being considered. Should the application be successful this fee becomes the first weeks rent. If the application is unsuccessful then the option fee is refunded to you. If the application is successful and you renege on the application, then the application is forfeited and paid to the owner. Therefore, if you change your mind after paying the deposit, the Landlord may retain all or part of that deposit. Where an option fee is applicable, it is recommended that you request a cut off date whereby you can withdraw your application and not forfeit the application fee. Payment of an option fee does not guarantee the property. It is usually paid by electronic funds transfer, bank cheque, credit card or cash if the agency will accept cash. If not paid at time of lodgement it must be paid within 24 hours.
- Waiting Period – Applications are presented to the owner for final decisions. Typically, you should be advised of outcomes on your application within 1-2 days. However, sometimes, where a landlord cannot be contacted immediately, the agent may need to wait for a reply, so sometimes it may take up to 4 days for a reply on your application.
Please note: In the current market, there may be numerous applications submitted for the same property, and therefore, it is not common to negotiate the asking rental price. In fact, many applicants are offering a higher rental amount than that advertised for highly sought over properties in an effort to try to secure the property.
Please ensure you bring all required documentation including enough money for option fees or have the ability to access a bank machine on your viewing day. Failure to complete the application in full (including wages) means that most agents will just continue on to the next completed application. Be sure to sign the document giving permission for the agent to contact your referees.
top ↑
The Rental Lease – ‘Residential Tenancy Agreement (RTA)’
Before you actually move into your rental, you must sign a tenancy agreement or lease. A lease describes the rights and responsibilities you have as a tenant, as well as the rights of your landlord. All leases provided by an agency in Western Australia are a standard lease as set by the Real Estate Institute of Western Australia (REIWA). As such, all the conditions in the lease are standard, except for the ‘Special Conditions’, or ‘Additional Clauses”, and these may vary from agent to agent. Ensure your read through the Special Conditions and Additional Clauses particularly carefully.
Other details in the lease include:
- The rental property address
- The amount to be paid as bond
- How much rent is to be paid and its frequency of payment
- The commencement and duration of the agreement
- The name and address of the landlord
It is a good idea to request a copy of the lease for review prior to signing the document. Your Wridgways Move Solutions consultant or Assignment Manager would be happy to review it for you. Analyse all the conditions in the document. Remember that a lease is legally binding once signed by you and your landlord/agent, therefore make sure you understand and agree with every word on the lease. Ensure you retain a signed copy of the lease.
top ↑
What Will I Have to Pay at the Commencement of the Tenancy?
Prior to the commencement date of the tenancy, normally at the time of signing the lease, you will be required to pay either one (1) month’s or four (4) weeks rental fees, in advance (or 2 weeks rent if you are making fortnightly payments), plus the relevant rental bond amount. This usually needs to be paid within 24 hours of being accepted, unless there is a mutual agreement otherwise.
For example, if the rental amount is $500 per week, and the agent has requested 4 weekly rental payments, you will be required to pay the following:
4 weeks rent in advance - $2000 ($500 x 4 wks)
4 weeks rental bond - $2000
Total amount payable - $4000.00
Minus the one week holding fee of - $500 already paid at application
Total amount payable - $3500
top ↑
What is the Condition Report?
- An accurate and detailed report on the condition of the premises will be handed to you by the agent on the commencement of your tenancy
- The report lists all the features of the premises, room by room. The inspection report should state the condition of, predominantly: the walls, roof, windows, painting, carpet, the fixtures and amenities. Some agents may include photographs to show condition of the property
- Each item is typically graded using a code to indicate good, fair or poor condition. Both the landlord/agent and the tenant are able to record their assessment of the premises – one alongside the other in two distinct columns. In most cases the landlord/agent will fill in the report with his inspection findings and then give you a copy to review
- As the tenant, it is up to you to assess each item listed. If you do not agree with the appraisal of an item, write down your preferred grading. Also, feel free to add extra items to the list if you feel these should be recorded. If there is room to add comments, you should elaborate on any specific details you believe deserve special attention
- Once you have filled in the condition report, sign it and return it to the landlord/agent. The landlord/agent must then provide you with a copy of the final report, which they should also have signed.
- File your condition report away for safekeeping. Hopefully you will not need to refer to it again. However, it may be useful when you end your lease to prove to the landlord/agent that the condition of the premises has not deteriorated during your occupancy. Your condition report may protect you if the landlord/agent claims some or all of the bond money is needed for repairs. If the report says these repairs were necessary at the start of the tenancy, you can prove that the bond money should be returned.
- Photographs are a great way to record the condition of the premises. It is worth taking several photographs, especially of areas where there is existing visible signs of damage. Use the date stamp on a camera or send doubles of the images to yourself by post and keep unopened for proof of the date when the pictures were taken.
- You have seven (7) days in which to make comments and return a signed copy to the Agent
- If you do not return the Condition Report within seven (7) days of the commencement of the tenancy, you will be notified in writing that the original report WITHOUT your comments will make up Part 2 of the Residential Tenancy Agreement
- When a property is furnished a detailed Inventory of contents with a brief description and current condition will be included with your Residential Tenancy Agreement – this document MUST be very carefully checked and comments added
top ↑
What Happens if the Lease is Broken Mid-Tenancy?
If you sign a lease but find that you need to vacate the property earlier, you must give the Agent/Landlord notice in writing immediately. You will be responsible for paying the rent until either a new tenant has moved in or the lease expires. You will also be responsible for paying a re-letting fee, usually a minimum of one (1) week’s rental and all advertising costs
top ↑
Who pays for Insurance?
It is your responsibility to insure the contents of the property (unless the property is offered furnished). Your Landlord will have public liability, building and landlord protection insurance only.
top ↑
Who pays for Water Usage?
In most cases, the property owner pays the annual water rates which includes consumption up to a certain amount. The tenant may be required to pay for excess water consumption above this amount iwhich is usually quite minimal.
top ↑
Who pays for Utilities such as Gas & Electricity?
Tenants are responsible for payment of all utilities including phone, gas and electricity unless specifically advised otherwise, and these costs are not included in the rental amount.
top ↑
Who is responsible for Gardening and Pool Care?
You are required to keep the grounds and gardens tidy and free from rubbish. This includes mowing the lawns and generally keeping the garden in order. Pool care is also the tenant’s responsibility unless otherwise stated and arranged prior to signing the lease. This includes purchasing of pool chemicals. Many executive style properties do however include gardening and pool care in the rent and lease.
top ↑
How many People can Occupy an Apartment/Home?
The landlord/agent determines how many people can occupy an apartment or home. e.g. for a 1 bedroom apartment, four family members willing to share is not acceptable to real estate agents. In this example, 2 tenants would be the maximum allowed.
top ↑
Can I Smoke in my Property?
Smoking inside the property is a big issue for some landlords with some leases stating that smoking inside the house is not permitted and ANY evidence of smoking inside the premises is in breach of the lease. You are not permitted to smoke while viewing a property.
top ↑
I Have a Temporary Residents Visa, Can I Purchase Property ?
If you hold a temporary residents visa which allows you to live in Australia for more than 12 months, you are exempt from requiring government approval to purchase property in Australia. The temporary resident exemption applies to any contract that was entered into on or after 18 December 2008. There are many rules and regulations that you must meet in order to qualify for this exemption, ensure you review the following before making a decision to purchase property in Australia: www.firb.gov.au/content/faq.asp
top ↑
Additional Information & Web Reference List:
top ↑