Should I accept this agreement? First IP up for rent in Liverpool

Hi everyone!

I put up my IP (1bed apartment $360 weekly) for rent a week ago just right before the strict lockdown in Liverpool NSW.
Now the PM has found 1 applicant- couple(stable job, one is a healthcare worker, no kids/pets). However they don’t have a rental history since they used to own a house and just sold it. We agreed on 6 month lease. They are moving once restrictions ease on first week of August, and the only time PM can conduct work since they’re not considered as “essential”.Then the future tenants tried to negotiate the rent down to $350 as their application got accepted with a $350 unit somewhere else.
Should I accept their terms or just keep on advertising the unit and wait until someone offers $360 weekly once the restrictions ease(end of July), with a proven rental history.

We are paying 2 mortgages atm and this IP is $1508/monthly( refinancing to IP -IO loan from HO-P&I loan is ongoing atm).

Additional fees:
Council -$1200 yearly
Strata - $1200 quarter
Water

Thank you all in advance!

 

Hi there, i have relatives in Melbourne who noticed the lockdown caused drop in rents in their area. They moved twice to better deals, so i think taking a bird in the hand makes sense. Wylie makes good suggestions re: refund.

If it was me i would follow wylie's advice

 

Same in Brisbane .. tenants are getting multiple applications approved and then trying to negotiate. Things have slowed down and will stay slow until restrictions ease and borders open.

 

I'd be grabbing them. Wylie's suggestion is a good one. The Liverpool market is tough right now so a bird in the hand.....

 

Enquiries are definitely down because of lockdown, expecting an influx after restrictions are lifted but so much uncertainty at the moment.

I would take the $10 drop given its taken a number of weeks to get the 1 applicant. Your agent should be able to work to start the tenancy. They need to ensure the tenants are secured (deposit, lease signed, bond paid) asap so you don't risk losing them.

 

As most people have said it may be wiser to take the tenants at $350 p/w. If you knocked them back and they pulled out of the agreement how long would you have to wait to find another decent tenant?

 

I haven't had many properties available in the last few weeks but I haven't really noticed a slowdown myself?
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@Pinkmarjory It sounds like it might be worth seriously considering keeping them on.

 

Hi Wylie,

apparently the PM has already gave a “congratulatory” letter to the tenants of being accepted at $350 weekly unbeknownst to my knowledge. I don’t know if this is a red flag, but i would’ve said yes anyway as per all of your advises. I just didn’t understand why they had to ask me in the first place, when they’ve already dealt with future tenants.

I totally followed what you said and accepted the said applicant. the PM’s director even spoke to me on how the process will be in terms of “refunding” the $260. Thank you for your advise! Great help!

 

hi Mel,
So far the PM has only gotten a deposit, should I chase her up for the signed lease and bond ASAP? She kept on reiterating 2 august the tenancy agreement will be signed, once the restrictions are lifted “per se”. Is having JUST a deposit paid strong enough to keep the tenant from backing out? Thanks

 

No, it is not. No lease equals no confirmation of tenant. Your PM should keep looking for a tenant, because unless they give bond and sign the lease, they have no commitment to stay.

 

The applicant's only loss at this stage is the deposit, if its 1 week its not much at all. Restrictions are extremely unlikely to be lifted 2nd August unfortunately. It sounds like your PM is signing physical leases (not electronic), but no reason why they can't get the bond lodged through RBO. They should pivot to electronic signing so the tenant can move in regardless of lockdown.

It may be time for a new PM.

 

Yep. Property doesn't just grind to a halt because of a pandemic.

 

thank you skater and Mel, the tenant has signed the lease and picked up the keys thank you.

 

Great to hear

 

Hi Mel, we have lived in the property for two years and kept place very clean, now the tenants are requesting the carpets to be steam cleaned.they have inspected the property previously and have signed the lease and taken the keys. Is it legally required for the carpets to be steam cleaned(only 1bedroom and study), the rest are floorboards? Thanks

 

Oh I just replied in the other thread! Not a requirement for the end of a tenancy in NSW and especially not in this instance.

 

No, I've never steam cleaned carpets if the carpets are clean. BTW, the time to ask for something to be done is before you enter into the lease. They've seen the property, and entered into the lease as is.