One of Brisbane IPs is a decent house on a developable block, it had a 12 month lease expiring in January. About 4-6 weeks, the (good) tenant broke lease, and has vacated the property. To date, she is still paying rent. There are no vacate issues except some yard maintenance. We have had loads of opens, and loads of inspections, but no applications at the current price. The biggest drawback is a major construction site across the street, and DA approval (with a big for sale sign announcing the unit development) on the block next door. Thus... no one will have a bar of it. The PM rang yesterday and said there are no takers, and given the surrounding developments, it's now way overpriced. She said that the tenant is paying rent still, but given there is 6 months to go is muttering about going to court to break her lease. She does have a case - the developments are new since she moved in, and are definitely impacting its rentability. So, where do she and I stand? Do I drop rent now to get it tenanted and wear a loss until the construction is all finished? (This might be a year or two, once the dust settles I think the house will be desirable again)? Do I offer a rent drop now and her to cover the shortfall - this might keep her happier.... ? Do I just hold out as long as we can... it's a contract after all, and wait to see what happens in court? (Do I sell?? I've had some quiet inspections, but really I don't need to. I'm also trying to buy the DA approved house next door, but this may just double my troubles!). I'm not interested in developing it until probably the next cycle.