Not sure if someone has already posted this news here.
http://www.news.com.au/business/story/0,23636,22579135-462,00.html
Cheers,
Oracle
http://www.news.com.au/business/story/0,23636,22579135-462,00.html
Cheers,
Oracle
Sydney: Year's rent offered for a lease
- Thread starter oracle
- Start date
Not sure if I get it. So he offered a year's rent to get him to the front of the queue and then wanted his money back? Unclear if this is after or before signing a lease. Surely the year's rent is only attractive if it goes to the landlord??
I have been offered a large advance on a number of occassions and although its nice it isn't ever the deciding factor. Maybe if that was the only point of difference beween two tenants.....
Why are agents playing such silly games with rents. Why not just ask for more in the first instance? You can always be bargained down. I usually do that......ask for above market rent and then get shocked when they just say "Where do i sign?" Makes you wonder how much property managers are holding down the market rent.
I have been offered a large advance on a number of occassions and although its nice it isn't ever the deciding factor. Maybe if that was the only point of difference beween two tenants.....
Why are agents playing such silly games with rents. Why not just ask for more in the first instance? You can always be bargained down. I usually do that......ask for above market rent and then get shocked when they just say "Where do i sign?" Makes you wonder how much property managers are holding down the market rent.
Again; typical media sensationalism.
This situation will apply to a few areas where there is more rent demand and less properties available, and it will be on a few select properties that are the absolute best I'm tipping.
Across the board, there is a tightening which is good for us, but it's not like that article suggests.
This situation will apply to a few areas where there is more rent demand and less properties available, and it will be on a few select properties that are the absolute best I'm tipping.
Across the board, there is a tightening which is good for us, but it's not like that article suggests.
2 yrs ago I was offered 12 months rent up front by a tennant to secure one of my IP's.
I had two parties both eager to get the property, I decided on one couple from the Defence force. The day they went to the property to sign the lease, my PM found out they planned to sub let out the other 2 bedrooms to 2 other defence force guys (each of whom I'm sure probably would have had a girlfriend, and God knows how many cars in total!). My PM called me on the spot to inform me and I told her to get rid of them and call back the other couple who wanted the place.
10 mins later my PM called me back and said she had secured the other tennants, and to my surprise they had offered 12 months rent up front as my agent asked if there was anything they could offer to make them more attractive to the landlord who was weighing up a few offers.
Having said that, I don't think I'd necessarily want 12 months rent up front again. I slapped it straight on one of my loans to reduce the interest, which was good - but it then cause a drain on my cashflow for the rest of the year when I had to make the entire mortgage payment without any rental income each month.
For the small amount of interest it saves, I don't think I could be bothered again.
I had two parties both eager to get the property, I decided on one couple from the Defence force. The day they went to the property to sign the lease, my PM found out they planned to sub let out the other 2 bedrooms to 2 other defence force guys (each of whom I'm sure probably would have had a girlfriend, and God knows how many cars in total!). My PM called me on the spot to inform me and I told her to get rid of them and call back the other couple who wanted the place.
10 mins later my PM called me back and said she had secured the other tennants, and to my surprise they had offered 12 months rent up front as my agent asked if there was anything they could offer to make them more attractive to the landlord who was weighing up a few offers.
Having said that, I don't think I'd necessarily want 12 months rent up front again. I slapped it straight on one of my loans to reduce the interest, which was good - but it then cause a drain on my cashflow for the rest of the year when I had to make the entire mortgage payment without any rental income each month.
For the small amount of interest it saves, I don't think I could be bothered again.
Don't you have an offset account? If so, that doesn't make sense. Just don't spend it..
I agree with Glebe. Getting more cash up front is ALWAYS good. Maybe putting it all into the offset wasn't the best way (since that leaves you with a technical cash shortfall for the rest of the year) but getting cash faster is definitely better than getting it slow.Instead of putting it into the loan you should have put it into a high-interest account, say. That earns you more interest than you would have received if the rent had been paid to you monthly.
I'd ask, though, would having rent paid 12 months up front make the PM lazier, do you think? After all they have no incentive to do their job anymore.
Alex
I'd ask, though, would having rent paid 12 months up front make the PM lazier, do you think? After all they have no incentive to do their job anymore.
Alex
