Hi everyone
Our tenants have just vacated our 18 month old 4x2x2 IP in Gladstone and it is advertised for lease. We are aware that the rental market is a little quiet at present in the 4 bed market, especially in the newer estates - we are in Emmadale Gardens. There are about 200 unfurnished 4x2x2 for rent at present in postcode 4680 ranging from approx $550-$750 per week. Properties up to about $640 per week seem to be getting the best result.
We listed for $630 and have just been offered $620 a week with Bechtel. We have never done a corporate lease but are aware that Bechtel are one of the top tier players in town. Question is are corporate leases a good or bad move in the Gladstone market given present conditions?
My main concerns are late payment of rent and the property going downhill fast if there is a revolving door of different tenants, who are unlikely to do things like clean regularly and mow lawns etc.. Alternatively I thought I had heard that Bechtel mainly house executives families in houses they lease? I'm also unsure whether our PM would still do the usual inspections during these sort of leases.
Our original intention was to initially secure a new tenant on a six month lease, as we suspect the rental market may improve or firm up a little later in the year and we may be able to increase the rent to $650-$700 (we were getting $700). With Bechtel we would appear to be locked in with the existence of an option and a future capped rental increase of 5%. On the upside we would have the security of a fixed lease in the current quiet market.
On a final note I am unsure whether the Special Terms that Bechtel insist on are reasonable, or should I be seeking amendments (and would they be even willing to negotiate?) or to add some special terms of my own? I have attached some information that Bechtel has provided in this regard.
Any urgent feedback would be greatly appreciated, especially from those who may already have IPs leased with Bechtel.
Thanks
Angela
Our tenants have just vacated our 18 month old 4x2x2 IP in Gladstone and it is advertised for lease. We are aware that the rental market is a little quiet at present in the 4 bed market, especially in the newer estates - we are in Emmadale Gardens. There are about 200 unfurnished 4x2x2 for rent at present in postcode 4680 ranging from approx $550-$750 per week. Properties up to about $640 per week seem to be getting the best result.
We listed for $630 and have just been offered $620 a week with Bechtel. We have never done a corporate lease but are aware that Bechtel are one of the top tier players in town. Question is are corporate leases a good or bad move in the Gladstone market given present conditions?
My main concerns are late payment of rent and the property going downhill fast if there is a revolving door of different tenants, who are unlikely to do things like clean regularly and mow lawns etc.. Alternatively I thought I had heard that Bechtel mainly house executives families in houses they lease? I'm also unsure whether our PM would still do the usual inspections during these sort of leases.
Our original intention was to initially secure a new tenant on a six month lease, as we suspect the rental market may improve or firm up a little later in the year and we may be able to increase the rent to $650-$700 (we were getting $700). With Bechtel we would appear to be locked in with the existence of an option and a future capped rental increase of 5%. On the upside we would have the security of a fixed lease in the current quiet market.
On a final note I am unsure whether the Special Terms that Bechtel insist on are reasonable, or should I be seeking amendments (and would they be even willing to negotiate?) or to add some special terms of my own? I have attached some information that Bechtel has provided in this regard.
Any urgent feedback would be greatly appreciated, especially from those who may already have IPs leased with Bechtel.
Thanks
Angela
