Rental income letter
Why might a bank need a rental letter?
A rental letter is a letter from a property manager or the selling agent which confirms the current market rental of a property. The agent will inspect the property and estimate the potential or current rent income for the property by comparing it with similar investment properties in the area.
You are required to provide the bank with a rental letter so that they are aware of the total amount of rent income that you will receiveand so that they can then assess your loan accurately.
Rental letter template
To Whom It May Concern:
Re: Rental potential for: 1 George Street, Sydney NSW 2000
Further to our inspection of the above property, we submit the following opinion.
We feel that the above property in the current rental market will realise in the vicinity of $600 per week. We base our opinion on current market trends and recent comparable rentals in the area.
We thank you for the consideration and hope we can be of service.
Regards,
(SIGN)
Paul Adams
Property Manager
1 Pitt St Sydney NSW 2000
Ph 02 9000 0000
Bank requirements for rental letters
Australian lenders have strict requirements for letters confirming your rental income, and will often ask for a letter to be amended if it does not meet their requirements.
Your rental letter should be:
- Dated
- Signed
- Contain the name of the person who signed the letter
- Be on a letterhead with the company details for the managing agent or selling agent
Most lenders will accept a faxed copy however some will require your mortgage broker to hold the original on file.
Do you need help with your home loan?
If you need the services of a mortgage broker to help get your loan approved then why not talk to us at the Home Loan Experts? Please call us or enquire online to speak to one of our experienced staff who can help you to prove your rent income.
