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The Ultimate Guide to Renting in Perth
- Is it better to rent than buy a house in Perth?
- What are the benefits of renting a house?
- Is it worth buying a house in Perth?
- Guide to Renting a House in Perth
- Cost of Renting a House in Perth
- How much does it cost to rent a house in Perth?
- How much is a bond for rental in Western Australia?
- How much do I have to pay upfront for rent in Perth?
- What factors should be considered when choosing a location for your home in Perth?
- What are the cheapest suburbs to rent in Perth?
- Documents for Rental Application in Perth
- What do I need to apply for a rental in Perth?
- Which website is best for rental property in Australia?
- Visiting a Home Open in Perth
- Why is it hard to rent in Perth?
- Leasing Contracts in Perth
- Is fixed-term tenancy better than periodic tenancy when renting in Perth?
- Can the landlord increase the rent during a fixed-term tenancy?
- Tenancy Conditions in Perth
- Landlords’ Responsibilities on Rental Properties in Perth
- Tenants’ Responsibilities on Rental Properties in Perth
- What makes a property uninhabitable in Perth?
- What is “fair wear and tear” in a rental property in Perth?
- Ending a Tenancy in Perth
- How do I break my fixed-term lease in Perth?
- Other Ways to End Tenancy in Perth
Renting a house in Perth is a strategic way to test how well you can adapt to the town, with the assurance that you can leave if the lifestyle or neighborhood doesn’t suit you.
But before you can begin to feel out your community of choice, you must clear several steps, from looking for a real estate agent to filling out application forms to checking the leasing contract.
The complex process aside, we think that you’ll score a good rental in most places, considering that Perth is one of the most livable cities in Australia. Check this guide on how to rent a house in Perth so you can confidently navigate the rental market.
Is it better to rent than buy a house in Perth?
Deciding what’s better between renting or buying a house in Perth depends on individual circumstances. If you’re short on income, move a lot, or do not want to shoulder all the maintenance expenses, renting is better.
But if you dream of being a homeowner, have sufficient income, do not mind the mortgage and the interest from loans, and enjoy maintaining your home, buying a house is the way to go.
What are the benefits of renting a house?
Renting a house is great for people who are wary about payments. For instance, if you’re concerned you can’t pay the usual 20% mortgage deposit with your current income, then renting is the ideal housing option for you.
Renting means lower upfront costs. A renter’s typical initial payment is only about four weeks’ worth of rental, commonly known as a tenant’s security bond.
People who move a lot due to jobs and other obligations will also find renting convenient. Most leases last six to 12 months only, allowing for more flexibility.
Is it worth buying a house in Perth?
Buying a house in Perth can yield favorable results through investment, so it’s worth a try if you have the money, energy, and grit (as well as an ounce of luck and timing).
After all, buying one means you’ll be owning an asset whose value can increase in time (if market conditions are favorable). You can then pass the home to your children or sell it to buy a second one.
You can also do any upgrades and renovations to your home without worrying about the landlord charging you for damages. Renovations are especially important if you’re planning to sell the property in the future.
Guide to Renting a House in Perth
Deciding whether to rent a home requires careful thought and involves many steps. Here are the factors to consider when looking and applying for a rental property.
- Cost of rent
- Location
- Documents for rental application
- Rental property listings
- Leasing contract
- Tenancy conditions
Cost of Renting a House in Perth
The first and likely most crucial consideration when renting a house in Perth is the rental cost. It’s not an exaggeration to say that knowing how much you’d spend on the rental will make or break the deal.
How much does it cost to rent a house in Perth?
The rental cost in Perth is pricey, with the median being around $523 per week for house rentals and $460 per week for apartment units. Monthly, that equates to $2,092 and $1,380 respectively.
The high rental rate is largely due to the recent low vacancy rates and lack of available housing due to slow construction. Moreover, prices will likely go higher as the population increases.
Additionally, Perth is a highly desirable place to live in for its climate and signature laid-back lifestyle, making prices high.
Fortunately, prices of essentials such as food and transportation remain stable in the city. Also, the cost of living here is still cheaper than in Sydney and other eastern capitals.
How much is a bond for rental in Western Australia?
Renting a property in Perth requires you to cover the tenant’s security bond. According to government regulations, the maximum value of the bond is four times your weekly rent or a month’s worth of rental fee.
If your weekly rent is $523, you’ll have to pay an upfront cost in the form of a bond worth $2,092.
Know that the bond serves as protection to the owner should you cause damage to the property or fail to pay your rent.
However, you will lodge the payment with the Government Bond Administrator, a government-managed trust fund. Neither the owner nor the real estate agency can keep the bond.
How much do I have to pay upfront for rent in Perth?
The upfront costs for your house rental in Perth will depend on the total required fees, moving costs, utility connections, and household essentials.
Expense | Amount |
Rental application fee | Between $50 and $100 |
Bond | Four weeks’ rent (e.g. $523 weekly = $2,092 bond price) |
Rent in advance | Two weeks’ rent (e.g. $523 weekly = $1,046 rent in advance) |
Moving costs | Removalists: $125 – $315 per hour Moving truck rental: $50 – $170 per day Cleaning services: $150 – $200 Packing supplies: $2 – $9 per item |
Utility connections | Electricity: Starts at $11.58 Gas: Starts at $7.35 Internet: Setup fees are waived for contracts of 6 to 12 months |
Household essentials | Depending on tenant’s preferences |
Pet bond (for pet owners who were allowed to move in with their fur babies) | $260 |
What factors should be considered when choosing a location for your home in Perth?
Searching for a house to rent in Perth is more efficient if you narrow down the location of the property first. Among the things to consider are its proximity to important institutions, the average rental price in the neighborhood, and the size of the unit.
There are many suburbs to choose from, but you can filter the options and focus on the locations that matter by asking yourself the following:
- How close will I be to transportation, schools, parks, etc.?
Check Perth’s suburb profiles online and pay attention to the property’s proximity to institutions such as schools and hospitals and public spaces.
Also, research how efficient a suburb’s public transportation is if you want to reach those key places fast. Additionally, consider the town’s walkability.
- Can I afford to rent a house myself or do I need to share?
When looking for a suburb, consider whether the average rental prices are affordable for you. It’s often simpler to pay the rent on your own than have someone share the responsibility.
But if you badly want to live in a suburb even with the rent being pricier, you can consider house sharing. You’d have to make sure your housemate will be reliable (and vice versa).
- How much space do I need?
If you’re living alone, you might not need that much space, making it easier to find a property in the city or inner suburbs.
You might be able to narrow down your choices more easily if you consider space and rental costs. But remember, a bigger rental house at an affordable rate is a rare gem, and being able to lease one will be an uphill battle.
- Does the property allow pets?
Taking your pets into the equation will further narrow down your search, as not all rentals allow fur babies in.
What are the cheapest suburbs to rent in Perth?
You can find the cheapest rental houses in the Perth Metropolitan Area, with the most affordable being Armadale at a median weekly rent of $350.
The top 10 most affordable suburbs to rent in Perth have medians ranging from $350 to $375 weekly rent as of writing.
The following table also implies that rental properties in these places aren’t selling like hotcakes, unlike in other suburbs where leases take only nine days before a tenant snaps them up.
Suburb | Median Weekly Rent | Median Days to Lease |
Armadale | $350 | 21 |
Coodanup | $350 | 24 |
Mandurah | $350 | 15 |
Medina | $350 | 17 |
Midland | $360 | 19 |
Kelmscott | $370 | 13 |
Osborne Park | $370 | 13 |
Pinjarra | $370 | 23 |
Orelia | $375 | 12 |
Source: REIWA
Documents for Rental Application in Perth
After choosing a suburb and zeroing into a property, the next step is to take care of the paperwork or rental application documents.
Ideally, you must have the forms and information ready while you’re looking for a suburb to save time.
What do I need to apply for a rental in Perth?
When applying for a rental house in Perth, you should secure requirements including your identification, references, proof of income, proof of rent history, cover letter, and proof of current address.
Note that owners or property managers give out an application form to help them assess you during the selection.
Additionally, rental websites, like rent.com.au, allow you to build a renter resume that you can use if you’re applying for a property through the site.
1. Identification
You will need to supply personal details such as your name, address, employment details, and the like. Photo identification is also necessary such as a passport or a driver’s license.
Also, secure a Medicare card or birth certificate as a backup.
2. References
Supply professional or personal references that will help you form a good impression with the property owner or manager. Also, ensure that you’ve told the concerned people that you’ve put in their names and contact details.
3. Proof of Income
Your proof of income can be in the form of recent payslips and the details of your workplace.
4. Proof of Rent History
Your previous tenancy ledgers will be handy during your application, provided that they will show that you’re a good tenant who pays your dues on time.
5. Cover Letter
Similar to applying for a job, applying for a rental house requires you to make a good first impression, and cover letters are one of the most effective ways to do that.
Make sure your cover letter can convey to the property manager that you’re a suitable tenant in a succinct and respectable way.
6. Proof of Current Address
Help the property manager verify your current residence by providing a copy of your utility bill or car registration.
Which website is best for rental property in Australia?
Houses available for leasing are listed on many online search sites. The best-known and one of the longest-operating is the Real Estate Institute of Western Australia or REIWA.
The organization’s site provides a platform for tenants, buyers, and agents to connect. The site is intuitive, and you can find substantial information not only on listings but also about renting in general.
Other well-known sites include Rent West and Rent, both home to thousands of listings in Australia.
Visiting a Home Open in Perth
Once you find an available rental property in Perth and succeed in contacting the property manager or lessor, you’d likely receive an invitation for a home open. It’s your important chance to see the rental house for yourself.
Also, it’s an opportunity to make a good first impression on the property manager or lessor. Make sure you’re on time for your visit, be polite, and be confident.
Ensure that you’d make the owners feel that they can entrust the rental house to you.
Why is it hard to rent in Perth?
It is challenging to lease a property in Perth right now, as the rental market has been sinking into record-low vacancy rates, going deep as 0.5% in recent months. This figure means the demand is high yet the number of available rental properties can’t keep up.
One of the reasons why the stock is low is that many landlords decided to cash in their investments when the pandemic hit in 2020.
With the lure of lower interest rates at that time, many bought into the landlords’ offers, essentially removing once-rentable properties from the market.
Eventually, rental properties in Perth continued to be snapped up until only a few vacancies remain.
However, two years into the pandemic and the city’s rental market became inundated by the influx of tenants-wanna-be who came in when border controls eased up.
But while experts say that the trend will likely continue, solutions such as building more housing and increasing activity in property investments in Perth will help reduce the pressure on the rental market. At least that’s what we hope.
Leasing Contracts in Perth
Once your rental application is approved, you will likely enter into a leasing contract or a tenancy agreement with the lessor or property manager.
The contract can either be a fixed-term tenancy agreement or a periodic tenancy agreement.
A fixed-term tenancy agreement is an agreement with a defined start and finish date. Most of these contracts last six to 12 months.
Meanwhile, a periodic tenancy agreement lasts for an indefinite time. Ending this tenancy requires the lessor to give a 60-day notice or the tenant to issue a 21-day notice.
Is fixed-term tenancy better than periodic tenancy when renting in Perth?
A fixed-term tenancy sounds better than a periodic tenancy if you don’t mind staying in a rental house for a long time. There’s no reason to leave if the suburb you selected fits your lifestyle and you get along with your landlord.
You should also remember that many lessors prefer tenants who are applying for a long-term stay. After all, a fixed-term tenancy gives the landlord greater financial security by reducing the risk of a vacant, non-earning property.
Of course, a fixed-term tenancy has more constraints than a periodic one. Those who badly need flexibility for work and lifestyle reasons should go for the less-strict periodic tenancy agreement.
Can the landlord increase the rent during a fixed-term tenancy?
Rental rates under a fixed-term tenancy can increase within the term but only if the agreement stipulates the increased rate amount and/or the calculation method.
Moreover, the landlord cannot increase the rent until after six months of the tenancy. After the first increase, another increase is only allowable once every six months.
Regardless of the tenancy, the landlord is required to issue a 60-day notice to inform the tenant of the increase. This rule is to give time for the tenant to prepare and to give way for possible discussions.
Tenancy Conditions in Perth
A tenant and lessor/property manager share responsibilities in maintaining the rental property.
The following are some of the duties each party should fulfill during the tenancy’s duration, from moving in to vacating the property or renewing your contract for another term.
Landlords’ Responsibilities on Rental Properties in Perth
Some of the responsibilities of the lessor or property manager include the following:
- Ensure that the property is habitable—vacant, clean, and has fully functional utilities at the time of moving in
- Provide the tenant keys not only to doors and windows but also to the garage and letterbox
- Ensure that at least two residual current devices (RCDs) are installed on the property
- Ensure that smoking alarms are working
- Monitor and pay for property upkeep including plumbing, air conditioners, water heaters, and fixed appliances
- Provide hoses and sprinklers for garden maintenance and oversee the reticulation system, tree lopping, cutting overhanging branches, and maintaining fire breaks
- Provide safety barriers and maintenance equipment for pools or spas (if the rental house has them)
- Pay local council rates
- Shoulder costs for repairs warranted by fair wear and tear
The lessor or property manager will fill out a property condition report when you move in and once you vacate the rental house.
This report will serve as a reference should the necessity arise, usually involving property damages and covering the costs with the tenant’s security bond.
You can discuss the contents of the report with the lessor or property manager and point out any discrepancies you might find.
Tenants’ Responsibilities on Rental Properties in Perth
Meanwhile, tenants have to take note of the following once they’ve moved in:
- Maintain cleanliness and take care not to damage the property
- Perform basic household maintenance such as changing light bulbs and vacuuming
- Maintain the garden by mowing, weeding, and light pruning
- Secure the landlord’s permission before doing any alterations and additions, with the knowledge that only minor projects are allowed if at all
- Avoid being a nuisance to neighbors
- Avoid breaking any local laws, especially related to parking and pets
- Avoid using the property for commercial purposes
Keep in mind that landlords will do routine inspections of the property to ensure you’re taking care of it within the scope of a tenant’s responsibility.
The frequency of the inspections should be no more than four times in a 12-month tenancy. Moreover, your landlord should inform you ahead of their visit 7 to 14 days before the inspection.
What makes a property uninhabitable in Perth?
Rental properties are considered uninhabitable if they exhibit unacceptable conditions that can harm or inconvenience the tenants greatly.
Such conditions include faulty electrical wiring, a damaged plumbing system, and the presence of mold and chemical residues or toxic gases.
What is “fair wear and tear” in a rental property in Perth?
Fair wear and tear are natural results when a tenant is occupying the property. Such conditions include carpet wear due to frequent use in high-traffic areas, broken locks and flaking paints due to age, and faded curtains caused by years of sunlight exposure.
The lessor or property manager is liable for improving such conditions for the benefit of the tenant.
Meanwhile, neglectful damage caused by the tenant for which they are liable includes stains or burns from dropped things or pet soiling, a broken lock due to forgetting your keys, and damaged curtains caused by your animal companions.
Ending a Tenancy in Perth
The process of ending a tenancy depends on the circumstances you face as a tenant and the type of agreement you signed.
For instance, you will need to talk with your landlord and explain why you want to break your term. Or if your term has already ended, you or the landlord will have to issue 30 days’ notice of termination first before you can officially vacate the property.
If you’re under a periodic tenancy agreement, you can vacate the property anytime, provided that you first issued a minimum of 21 days’ notice.
How do I break my fixed-term lease in Perth?
To be able to terminate your fixed-term tenancy earlier than the stipulated end date, you will need to approach your landlord and explain your reasons.
Know that even if you come to a mutual agreement, you might still be liable for your tenancy under the terms of the contract until your landlord finds a new tenant or the tenancy period expires.
This means you’ll still need to pay rent, utilities, maintenance, and reimbursements the owner or property manager deems necessary.
Other Ways to End Tenancy in Perth
Some tenants will want to terminate their tenancy agreements due to pressing reasons.
- Destroyed or uninhabitable premises. A tenant can send a notice not less than two days should the property become unfit for habitation due to natural disasters and landlords’ neglect.
- Family violence. Tenants who want to end their tenancy due to domestic violence need only to fill out a notice of termination on grounds of family violence (with attached evidence). The tenant can give a minimum of seven days’ notice.