Rent Drop

Discussion in 'Property Management' started by hash_investor, 15th Nov, 2016.

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  1. WattleIdo

    WattleIdo midas touch

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    Riverina NSW
    Drop the rent by $20 and get that phrase 'two weeks free' up there on the site.
    I don't listen too much to even the best PMs about that initial price anymore (present company excepted). If you think about it, they have an incentive to keep rents up and to keep your property in a queue. That is, there were properties before yours which are still not tenanted and they're only just considering dropping their rent. New properties on the rental market advertised with high rent make the other contenders look much more attractive.
     
    WattleIdo, 15th Nov, 2016
    #21
  2. wylie

    wylie Moderator Staff Member

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    Just be aware that (like happened with our rent drop situation) even the promise of two weeks rent free (or even four weeks), if they don't think your house is worth $550 then they won't care about how many weeks they get free... it isn't worth $550.

    That is what we found anyway. It didn't help that this was in an area where hundreds of new built apartments were empty too, so we had an older house competing with new builds that could be rented for $500. If we didn't drop to a figure that got them in the door, we had no hope.

    I'd be guided by the PM and also what you can find on the net yourself to see where your place should be sitting. I would have preferred the rent free weeks over dropping so much, but we just were not competitive.
     
    wylie, 15th Nov, 2016
    #22
    Marg4000 likes this.
  3. hash_investor

    hash_investor Well-Known Member

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    I understand that. The numbers figure is psychological
     
    hash_investor, 16th Nov, 2016
    #23
    wylie likes this.
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