PM expectations, PM fails to have tenant sign lease, tenant now asking for discount

[Gladinvestor]

Hi all, new to the forum

Gladstone...get what you can! If you think it's worth $600, it is probably worth $550 and might be $500 by the time the tenant moves in! I'm based in Bris but have a couple properties up that way and so have been watching the market closely.

My experience is that tenants are the problem in this situation or the "agency". We are so quick to blame the poor property manager sometimes, I have been guilty of this myself. I have found going down the line that it turns out my property manager is great but it's the agency processes/procedures that cause her to be unable to provide more to me as a landlord. The property managers are keen and enjoy providing more service, however the agency is a business after all and so the property manager is held back by agency expectations of her as a money-making employee. Just think before you judge your property manager too hard - he or she has the power over whether you keep a tenant or not, whether you see applications or not........just be careful!

Find a property manager who genuinely cares, you can tell in their voice. But at the end of the day, their genuine care may be stifled by the agency. I keep my current manager because she cares.

 

[Sez]

I do the same as Lil Skater - I'd be more upset that they'd removed the advertising and any chance of finding another tenant if the accepted applicant hadn't signed / paid.

To avoid wasting tenants time as well in this situation I'll still process their applications too and any good applications I'll refer them on to other similar properties that may be suitable so no-one is put out.

I would go back and offer $640 per week but if he doesn't go for it accept the $600. You could potentially approach the agency to cover your loss of the $80 a week for the life of the lease as it was their failing that played a part.
They might come back and offer to cover $40 per week - still a win .

If the rental market isn't great then it's far better to take a tenant at what price you can than leave it empty as others have said .

 

[DavidMc]

Good news... I have finally got a signed lease at $600pw.

In exchange for the $80pw reduction I have asked to remove the pool maint ($80 per month) out of the lease. This will soften the blow a little.

 

[perthguy]

Good news... I have finally got a signed lease at $600pw.

In exchange for the $80pw reduction I have asked to remove the pool maint ($80 per month) out of the lease. This will soften the blow a little.

Sounds like a good result.

 

[wylie]

Good news... I have finally got a signed lease at $600pw.

In exchange for the $80pw reduction I have asked to remove the pool maint ($80 per month) out of the lease. This will soften the blow a little.

Is this the same tenant who looked at and agreed to pay $680 per week? If so, have the kicked up a stink about not getting the pool maintenance? (They would have a real cheek to raise that issue, but I'm just curious?)

 

[Waldo]

In exchange for the $80pw reduction I have asked to remove the pool maint ($80 per month) out of the lease. This will soften the blow a little.

You're aware that the tenants probably won't maintain the pool at all and by the end you'll have a mess to deal with? Massive generalisation I know.

Personally, if you had $680 deposit I would have called the bluff, kept the money and let them walk - especially if you were confident that you could lease it out at the lower amount.

 

[DavidMc]

You're aware that the tenants probably won't maintain the pool at all and by the end you'll have a mess to deal with? Massive generalisation I know.

Personally, if you had $680 deposit I would have called the bluff, kept the money and let them walk - especially if you were confident that you could lease it out at the lower amount.

Yes. Unfortunately the tenant has the power in Gladstone at the moment... really not sure how easy it would be to rent out again. Potentially pretty hard...

The PM told me it was too late to remove the pool maint out of the lease. Least we got a cheaper pool person, $60pm rather than $80.

 

[MightyWill]

I would issue the tenant an eviction notice for being a smart ar@e.

LOl. I like this.

 

[DavidMc]

Is this the same tenant who looked at and agreed to pay $680 per week? If so, have the kicked up a stink about not getting the pool maintenance? (They would have a real cheek to raise that issue, but I'm just curious?)

Yes and no... it's the same guy, but the property has previously had pool maint included in the rent. After breaking their verbal contract of acceptance of the property at $680pw, I asked out of good faith would he be happy to maint the pool himself. He said no.

On the bright side he's an electrician, fingers crossed he might spare me from a call out one day.

 

[wylie]

Yes and no... it's the same guy, but the property has previously had pool maint included in the rent. After breaking their verbal contract of acceptance of the property at $680pw, I asked out of good faith would he be happy to maint the pool himself. He said no.

On the bright side he's an electrician, fingers crossed he might spare me from a call out one day.

Same guy... happy to cut $80 per week off what he was happy to accept, but not happy for you to cut $80 per month off what you were happy to offer.

I'd watch the rental market closely, and increase his rent and/or drop the pool maintenance at next lease review (but only if you want him to stay, only if he is looking after the place, and only if it won't mean less rent or an empty house).