I had a tenant paying $295pw for a 1BR unit in St Kilda. He vacated a month ago so we advertised but had no takers. So 2 weeks ago we dropped to $285pw but still no takers. So last week we dropped to $275pw. I said to the PM I'd like $275pw for the first 6mths with the tenant having an option to renew at $285pw for the following 12mths. This is so my lease doesn't expire at a bad time. I want it to expire on February 1st when the market is busy.
There are 2 other apartments in the same block available for rent. One is fully renovated asking $310pw, the other is similar to mine asking $275pw however both of them are on ground floor and mine's on the 3rd floor so better privacy and security.
So PM emails and says we've had 9 open for inspections and she's got an applicant asking for a 17mth lease at $275pw. I'm reluctant to accept such a long lease at such a low rent but maybe the market is soft now?
Does anyone else think St Kilda rentals are soft now?
Should I take the 17mth lease at $275pw or give a 12mth lease which expires next July (bad time to find a tenant) and then try to increase it if the market is better?
There are 2 other apartments in the same block available for rent. One is fully renovated asking $310pw, the other is similar to mine asking $275pw however both of them are on ground floor and mine's on the 3rd floor so better privacy and security.
So PM emails and says we've had 9 open for inspections and she's got an applicant asking for a 17mth lease at $275pw. I'm reluctant to accept such a long lease at such a low rent but maybe the market is soft now?
Does anyone else think St Kilda rentals are soft now?
Should I take the 17mth lease at $275pw or give a 12mth lease which expires next July (bad time to find a tenant) and then try to increase it if the market is better?