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You can find the current article at its original source at https://www.theguardian.com/australia-news/2023/jun/09/australian-renters-facing-pre-application-for-properties-before-inspecting
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| Australian renters facing ‘pre-application’ for properties before inspecting | |
| (about 7 hours later) | |
| Applicants asked for proof of identity, rental and financial history, and references, with some listings being snapped up before first showing | |
| Renters looking for new homes are being forced to “pre-apply” before inspecting properties, a process that can take hours and involves providing personal details, financial information and references. | Renters looking for new homes are being forced to “pre-apply” before inspecting properties, a process that can take hours and involves providing personal details, financial information and references. |
| Cassandra, who did not want her last name published, is looking for a place to rent in Melbourne after getting a job in the city. She said several listings she has come across during her search asked for pre-applications. | |
| In one, for a property on Bell Street in Preston, the ad said tenants should “pre-apply” through the online platform 2Apply. The 2Apply form asks renters for proof of their identity, their rental and financial history, and at least two references. | In one, for a property on Bell Street in Preston, the ad said tenants should “pre-apply” through the online platform 2Apply. The 2Apply form asks renters for proof of their identity, their rental and financial history, and at least two references. |
| “Once pre-approved our friendly team will contact you to organise an exclusive private inspection at a time that suits you,” the ad read. | “Once pre-approved our friendly team will contact you to organise an exclusive private inspection at a time that suits you,” the ad read. |
| Cassandra has also noticed rental properties getting snapped up before their first listed inspection. | Cassandra has also noticed rental properties getting snapped up before their first listed inspection. |
| “I called an agent today about a property that had been on the market for about 24 hours and had its first inspection tomorrow,” she said. | “I called an agent today about a property that had been on the market for about 24 hours and had its first inspection tomorrow,” she said. |
| “The agent told me the inspection is cancelled now as someone has already leased it before viewing.” | “The agent told me the inspection is cancelled now as someone has already leased it before viewing.” |
| Sean Budd, secretary of the Renters And Housing Union, said pre-approval took off during Covid but has become more common because of low vacancy rates. | |
| He said there is concern about the process because it often takes time and tenants have to hand over a lot of information. | |
| “There’s a lot of things on top of that. The data is being stored with third parties, and we don’t know where it goes.” | “There’s a lot of things on top of that. The data is being stored with third parties, and we don’t know where it goes.” |
| Ben Harris, a full-time carer for his mum, has lived on the Mornington Peninsula for three years. The rent for their three-bedroom unit was recently increased from $120 a week to $520, meaning they have to move. | Ben Harris, a full-time carer for his mum, has lived on the Mornington Peninsula for three years. The rent for their three-bedroom unit was recently increased from $120 a week to $520, meaning they have to move. |
| “With some properties I have been told I need to actually apply for the property before being given the chance to inspect,” he said. | “With some properties I have been told I need to actually apply for the property before being given the chance to inspect,” he said. |
| But applying for properties has become exhausting and they are starting to look further afield or potentially move in with someone else. | |
| “We have had four knock-backs recently, despite being able to afford it and having a great rental history,” he said. | “We have had four knock-backs recently, despite being able to afford it and having a great rental history,” he said. |
| Eliza Owen, head of residential research at CoreLogic, said with rental vacancy rates so low properties are being snapped up quicker than ever. | Eliza Owen, head of residential research at CoreLogic, said with rental vacancy rates so low properties are being snapped up quicker than ever. |
| She said for a typical rental property in Sydney the median time on the market has come down from 28 days in March 2020 – at the onset of the pandemic – to 19 days as of May this year. | |
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| “Melbourne has gone from 23 days … to 18 days” | “Melbourne has gone from 23 days … to 18 days” |
| And even those figures are likely an overestimation, Owen said, as they cover the whole online advertisement period. | And even those figures are likely an overestimation, Owen said, as they cover the whole online advertisement period. |
| “There could be a much shorter time between showing the property and it actually being rented,” she said. | “There could be a much shorter time between showing the property and it actually being rented,” she said. |
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| Hayden Groves, president of the Real Estate Institute of Australia, said the low vacancy rates were causing “distortions” in the market, including people submitting applications before inspections. | Hayden Groves, president of the Real Estate Institute of Australia, said the low vacancy rates were causing “distortions” in the market, including people submitting applications before inspections. |
| “This would not be something agents would ordinarily be driving,” Groves said. “It comes from the tenant side, such is the desperation of tenants to find appropriate and affordable accommodation.” | “This would not be something agents would ordinarily be driving,” Groves said. “It comes from the tenant side, such is the desperation of tenants to find appropriate and affordable accommodation.” |
| Groves said agents dealing with hundreds of applications are understandably trying to weed out serious applicants. | |
| “But it is not essential and certainly ought not to be mandated or insisted upon by the managing agent,” Groves said. | “But it is not essential and certainly ought not to be mandated or insisted upon by the managing agent,” Groves said. |
| “It is never a good idea to lease a property to a tenant that has not had the opportunity to view the property personally or by proxy.” | “It is never a good idea to lease a property to a tenant that has not had the opportunity to view the property personally or by proxy.” |