Got your heart set on a particular rental property? Competition can be fierce in the rental market so don't be surprised if you are up against several other candidates. So how do you make your application stand out? With a glowing rental reference!
We've compiled a complete how-to-guide that tells you everything you need to know about rental reference letters, including why you need it and how to write one so you can nab up your dream rental property.
What is a rental reference letter?
Firstly, you might not be fully informed on what exactly a rental reference letter is. A rental reference letter is a document/written declaration (usually one page) to a potential landlord from a previous landlord or property manager that includes important information about you as a potential tenant e.g. whether you paid rent on time, if you communicated respectfully with neighbours, kept the property in a good condition etc.
Background checks are mandatory when it comes to renters, and a key part of a background check is a rental reference letter. The purpose of a rental reference is to provide a vote of confidence from a trusted professional who has dealt with you previously as a tenant and can recommend you.
Why it’s important to have a great rental reference
This letter will essentially paint a picture of you as a character reference, to be dissected and analysed to see if you’re trustworthy enough to live in the property. By having a great rental reference prepared, it increases your chances of securing a rental property, particularly in a competitive rental market where there’s lot of applicants vying for tenancy.
Most application processes for a rental property ask you to list the name and contact details of at least 2 references. Submitting a rental letter in addition that provides a glowing recommendation is likely to put you ahead of the competition.
Property managers, future landlords and real estate agents want to be assured of the trustworthiness of any potential new tenants, and will often go through tenant screening.
What information do I include in a rental reference letter?
While it is dependent on certain situations, commonly a rental reference letter should aim to include the following;
- Your tenancy information, i.e. your name, current address, phone number, dates of occupancy when applicable, rental history etc.
- Condition of prior rental properties, both before you moved in and after.
- Former rental payments when applicable, highlighting payment on time and explanation of any debts outstanding when you moved out.
- Previous landlord/property manager/real estate agents' contact information and signatures.
- Issues discussed with prior landlords/property managers, resolution of any grievances with those in the accompanying neighbourhood.
You can also add in any other information you think would be helpful to their selection process, like stating if your previous landlord/property manager and yourself were on good terms or not.
To get started, you can utilise this rental reference letter, provided by the QLD government website.
Who should I choose for my references?
As tempting as it may be to reach out to your family members or your best friend, they may not be considered an unbiased reference by the landlord. Consider instead using references you have met in a professional environment.
Ideally you want to choose a previous landlord or property manager as they will be of most relevance when applying for a property. However if you have never rented before you can ask other trusted professionals for a reference- employers, supervisors, teachers etc.
Select your references wisely. Consider whether your relationship with the potential reference was positive and if they are likely to portray you in a positive light. Choose people who know you well and can give detailed information about your character.
Will the landlord call my references?
While it all depends on the landlord, there is a high chance that they will call your references as it is in their best interest to know more about you if they are trusting you with their property.
A landlord that has had experience with bad tenants in the past is going to be more likely to call previous landlords compared to landlords with only good experiences.
If the property is managed by a real estate agency, it is usually policy to call references.