Have dropped rent by $35... ouch!

There is a thread here talking about the softening of rents in some areas. I have just dropped the rent by $35 (in two stages over a few weeks) to get someone in a house in Balmoral/Morningside/Hawthorne area. Have had only one looker, who liked it but now the tenants are gone, we are asking $35 per week less than we were getting rather than have it sit empty.

I notice the other rental listings all have hundreds of hits and still sitting empty (or if not empty, still available for rent).

Of the houses within a kilometre radius, some are cheaper (and not as nice) and others are higher (and offer a bit more). So I think for the current market, we are sitting about right, but it certainly has softened from two years ago.
 
I think this could be seen as a good thing - it means people are looking to buy. I really feel like this Brisbane surge is finally going to kick into full gear this summer.
 
Perth rents are soft too.... last week dropped rent $25/w, still no interest..current tenant moves out end of the month.
 
I think this could be seen as a good thing - it means people are looking to buy. I really feel like this Brisbane surge is finally going to kick into full gear this summer.

Yeah thats why my current tenant is moving out..have built their own place.
 
There is a thread here talking about the softening of rents in some areas. I have just dropped the rent by $35 (in two stages over a few weeks) to get someone in a house in Balmoral/Morningside/Hawthorne area. Have had only one looker, who liked it but now the tenants are gone, we are asking $35 per week less than we were getting rather than have it sit empty.

Hopefully your rates are not locked in latest .25% would soften some of that lose
 
There is a thread here talking about the softening of rents in some areas. I have just dropped the rent by $35 (in two stages over a few weeks) to get someone in a house in Balmoral/Morningside/Hawthorne area. Have had only one looker, who liked it but now the tenants are gone, we are asking $35 per week less than we were getting rather than have it sit empty.

I notice the other rental listings all have hundreds of hits and still sitting empty (or if not empty, still available for rent).

Of the houses within a kilometre radius, some are cheaper (and not as nice) and others are higher (and offer a bit more). So I think for the current market, we are sitting about right, but it certainly has softened from two years ago.
That's nothing.

Our last tenant in our IP at Kalgoorlie was $310p/w.

Current tenant is on $265p/w.

Our first ever IP back in 2001 - supposed to get $450p/w - took 3 months to get a tenant, and at $350p/w

Now; that's OUCH.
 
Hopefully your rates are not locked in latest .25% would soften some of that lose

Our rates are locked in, about to come off one lock and into a new lock for another twelve months. But the rates are not very high, and we have to lock to prepay, but to be honest, I think we will be locking in at less than we are on now.

Rates not hurting though, luckily. I just don't like to move backwards.
 
I've found letting a tenancy end outside of the peak times (jan/jul) should be avoided at all costs at the moment.. Where I'm looking rental demand has softened to a marshmallow.. Too nervous ask for any rental increases.

What happened Wylie? Was the lease scheduled to end? Tenant break early? Could'nt go periodical until july?
 
I've found letting a tenancy end outside of the peak times (jan/jul) should be avoided at all costs at the moment.. Where I'm looking rental demand has softened to a marshmallow.. Too nervous ask for any rental increases.

What happened Wylie? Was the lease scheduled to end? Tenant break early? Could'nt go periodical until july?

Why is July a peak?

Jan makes sense - people starting new jobs, students starting up again. What's July?
 
I think this could be seen as a good thing - it means people are looking to buy. I really feel like this Brisbane surge is finally going to kick into full gear this summer.
That's being pretty optimistic :) renters becoming buyers with no renters left isn't ideal.. Good for capital growth if supply is limited. Definitely no end of supply of units at the moment.
 
I've found letting a tenancy end outside of the peak times (jan/jul) should be avoided at all costs at the moment.. Where I'm looking rental demand has softened to a marshmallow.. Too nervous ask for any rental increases.

What happened Wylie? Was the lease scheduled to end? Tenant break early? Could'nt go periodical until july?

Tenants bought a house after finally selling one in another city after a long on the market. We could have pushed for them to pay break costs as per the lease, but for personal reasons (very serious illness) we figured they needed a break. We can afford to make this allowance and were very happy to do so. They were fantastic tenants who have had a tough couple of years.

We have just sold a place, which brings a big capital gain, so could afford to be generous... would have been generous anyway, because I believe in paying it forward, especially for nice people, which these are.

We will end new lease in January, so that we are back in peak period once we find someone.
 
I had to drop $50 on one property in Perth, $45 on another in Mandurah, and $50 and $20 respectively on two more in Rockhampton. All within 6 months of each other. That wasn't pleasant.
 
There is a thread here talking about the softening of rents in some areas. I have just dropped the rent by $35 (in two stages over a few weeks) to get someone in a house in Balmoral/Morningside/Hawthorne area. Have had only one looker, who liked it but now the tenants are gone, we are asking $35 per week less than we were getting rather than have it sit empty.

I notice the other rental listings all have hundreds of hits and still sitting empty (or if not empty, still available for rent).

Of the houses within a kilometre radius, some are cheaper (and not as nice) and others are higher (and offer a bit more). So I think for the current market, we are sitting about right, but it certainly has softened from two years ago.


Just did exactly the same - 490/week in January in mt gravatt area, tenant in at 455 now with 2-3 weeks vacancy. Our first open, ten registered, two bought the following day and didn't show. Apparently this is a recurring theme.

I hope jerrybee's optimism is well placed. Things seem to be selling quickly, but little if any movement on 2015.
 
Most units in Darwin have had to slash their rents. A couple of mates at work have had to drop their IPs rents by about $50 at least.
 
I've just dropped another $20. I do now believe the family who rented our house meant they possibly were paying over market to be close to where they needed to be for schooling.

At the time, we had been getting $480 (from memory), tenant moved to the other side of town. The house was starting to look shabby, terrible kitchen, vanity that needed replacing. We put in a second hand but fairly flash kitchen, repainted throughout, new bathroom vanity, new taps, just tidied it up. Spent about $10K I think all up.

We asked $590 and got it easily but this house is well positioned for schools, cafes etc. Ability to walk to school was a big factor for the family who rented it.

Put it up another $10 after one year, and another $15 in January just gone.

I do recall back then checking other rentals and felt justified (peak period) to increase it.

At the same time a place we have at Camp Hill stayed at the same rent because things didn't appear to have gone up in that area. Another in Holland Park went up $10 but we didn't want to push it any more.

So... I think now, with hindsight, we were getting good rent, and reality is now hitting, coupled with it not being the best time to find a tenant.

Anyway, others around are dropping as I look each few days, so I'm not alone.

With a big capital gain on a place we've just sold, I'm looking on the bright side insofar as the rent we are not getting won't be income we have to declare, but gee I hope it rents soon.
 
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