How to Secure Your Dream Rental Property with an Impressive Rental Reference
If you’re completing an online application for a rental property, you’ve probably stumbled upon a request for a reference letter. In some cases, it is mandatory for your application to be considered, while in others, it is what will get you over the line in a competitive housing market.
If you’re not sure what a rental reference letter is, how to go about obtaining one or what it should include, the following guide has you covered!
Why a Rental Reference Letter is Important
When you rent a property as a tenant, the landlord is putting their trust in you that you will maintain it in good condition. Failure to do so could cost them thousands of dollars, some of which could fall back onto you. If you’re applying through an online rental platform, they may not even have the chance to meet you in person before allowing you to stay.
One of the easiest ways for them to filter out the “good” from the “bad” when tenant screening is by asking for a rental reference letter. This is basically the reassurance from a trusted individual (ideally a previous landlord) that you are reliable when it comes to paying your rent on time, you uphold your obligations as a tenant and you haven’t been problematic to deal with before, during or after the tenancy.
What is a Rental Reference?
A rental reference is a brief but informative letter (less than one page in length) that outlines the referee’s relationship to you, their knowledge of your rental history and/or your character. In an ideal situation, you would ask a previous landlord to explain your reliability as a tenant and reassure the prospective landlord that you didn’t make any unreasonable demands or complaints during the tenancy.
If you’re a first-time renter and don’t have any former landlords, you can ask an employer, mentor or supervisor to vouch for you as someone who meets their personal obligations to others.
How to Choose the Perfect Rental Referees
The strongest referee in the eyes of a landlord will always be a previous landlord, as they have a direct understanding of how you treat other people’s properties and whether you meet your obligations as a tenant.
If you don’t want to ask a previous landlord or have never rented before, consider asking an employer or a supervisor in a volunteer role you have held. Rather than asking family members, consider people with whom you have a professional relationship. They can vouch for your work ethic and attitude, as well as your ability to perform under pressure.
How to Approach Your Rental References
When you finish a tenancy, always ask the landlord if they would be willing to write a rental reference that you can use in the future. Their response will be a good indicator of whether they will give you a glowing reference or if they were less than satisfied with you.
Employers or supervisors may be less familiar with writing rental references and may require a little more guidance. Offer to provide them with a list of the key points to be included in the letter. This will not only make it less daunting for them but will ensure you have a letter that will assist you in securing your desired rental property.
If someone you approach to be a rental referee says “no”, don’t be disheartened. They may have a lack of time or don’t feel it is their obligation to do so. It’s always best to ask a landlord as soon as your tenancy is complete when you will still be fresh in their mind.
What to Include in a Rental Reference Letter
A comprehensive rental reference includes information on your relationship to the referee and the dates of the tenancy (if it is from a previous landlord). They should be honest about whether you paid your rent on time throughout the tenancy and the condition in which you maintained the property and its surrounding area.
Ideally, the landlord will explain that you were always respectful and friendly to deal with and that you made no unreasonable demands during the tenancy. If you are applying with a pet, ask them to include a sentence or two about the animal’s behaviour.
If possible, ask them to include the phrase “I would gladly rent out my property to them again”, which is one of the best stamps of approval.
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Example of a Successful Rental Reference
Below is a template for writing a successful rental reference letter, with all of the key topics covered. Remember, it’s best to tailor your reference letter to the rental property you are applying for, as this could help you to secure the tenancy.
[date]
[landlord’s name]
[business name]
[street address]
[suburb state postcode]
To whom it may concern
Re: Lucy Jones
This reference letter is to confirm that Lucy Jones has been a tenant in the above property since 12/01/22. The rental property is a one-bedroom apartment in a complex of 10 apartments.
Her last rent payment was $450, which was paid on time on 12/12/22. During the tenancy, Lucy has always been timely in her rental payments, which were due on a fortnightly basis.
We have not received any complaints from neighbours and Lucy has always kept the property and its surrounding area clean and tidy. Lucy made no unreasonable demands or complaints during her tenancy and her rental bond has been returned in full. She was proactive in notifying us of any issues at the property and accommodating of maintenance repairs.
We have not had a need to serve any legal notices to Lucy during her tenancy and would gladly rent out our property to her again.
Please don’t hesitate to contact me on [phone number] if you have any other questions regarding this matter.
Yours sincerely
[signature]
[landlord’s name}
Dealing with a Lack of Rental References
If you’ve never rented before, it’s still important to provide a reference letter as part of your rental application. It shows that you have professionals around you who are willing to vouch for your characteristics and your reliability as a human being.
If you're asking an employer or supervisor to be your referee, ask them to include information about your reliability as a worker/volunteer, your organisational skills and your general character. While these aren’t directly related to your ability to pay rent on time and maintain a rental property, they do give the landlord a better idea of who you are, as well as a contact who they can follow up with, should they have any further questions.
In addition, look for ways to prove that you have steady employment and an income that will enable you to pay your rent on time. This might be in the form of payslips or bank statements. Remember, as a rule of thumb, your weekly rent shouldn’t be more than 30% of your weekly income.
Another option for first time renters is to find a guarantor - a person who legally agrees to pay your rent and meet your lease obligations if you fail to do so. This is quite common with young renters who are moving out of home for the first time and require a bit of extra support from their parents.
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How to Write a Rental Reference Letter
To ensure your rental reference letter covers all of the basics AND stands out from the crowd, include all of the following bullet points.
• Your relationship to the referee
• Details about your previous tenancy (dates/address/rent)
• Whether you paid your rent on time
• How often those payments were made (monthly or weekly basis)
• Your relationship with the neighbours and any complaints made
• Whether you maintained the property to the standards outlined by the landlord
• How proactive you were in notifying the landlord of any maintenance issues
• Whether you were flexible in accommodating repairs and tradespeople
• Whether you made any unreasonable demands
• The behaviour of any pets staying at the property
• Was your bond returned at the end of the tenancy?
• Were any legal notices issued relating to the tenancy?
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Conclusion
It may seem like a lot of effort to obtain a rental reference letter, but in today’s competitive housing market, it’s more important than ever. It not only shows that you are financially stable and trustworthy with other people’s property but that you won’t be unnecessarily demanding during your stay. The good news is that by meeting your obligations as a tenant, you shouldn’t have any issues getting a glowing rental reference letter in the future.
