VIC Finding tenants in Melbourne inner (apartment)

Discussion in 'Property Management' started by Frenchie, 26th Apr, 2021.

Join Australia's most dynamic and respected property investment community
  1. Frenchie

    Frenchie Well-Known Member

    Joined:
    12th Feb, 2020
    Posts:
    321
    Location:
    Melbourne
    Hi

    Tenants are leaving my 2br apartment IP in Melbourne inner North. Not a dogbox high-rise - it has been rented by professional couples before.

    Agent is recommending that I drop asking rent from 550pw to 450pw to find someone quick. Seems a lot to me but perhaps I didn't realise how bad the market was? Checking on Domain most comparable flats are in the region of 470-520 but some have been on the market for several weeks.

    Is that reasonable, and had anyone dropped rent that much in Melbourne with good results?
     
  2. Traveller99

    Traveller99 Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    746
    Location:
    Settled
    During covid last year I had tenants break lease mid contract because I believe they saw bargains out there. Place then sat empty for 6 weeks. Discounted by 25% to 2012 prices and finally found tenants. Prices look to have risen by 5 to 10% since back to 2015 levels.
     
  3. Tony3008

    Tony3008 Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    972
    Location:
    Docklands, Victoria
    I had to drop the combined rents on my Docklands dual key from $740 ($440+$300) to $550 ($300+$250) but it stayed occupied so was worth the pain.
     
  4. The Y-man

    The Y-man Moderator Staff Member

    Joined:
    18th Jun, 2015
    Posts:
    13,443
    Location:
    Melbourne
    Had to drop significantly in mid-outer north - prop was vacant for over 5 weeks, and only got an enquiry when we dropped it below competitors.

    The Y-man
     
  5. Frenchie

    Frenchie Well-Known Member

    Joined:
    12th Feb, 2020
    Posts:
    321
    Location:
    Melbourne
    Thanks, so 20% drop is not that bad and I should be below the competition...