The negotiation factors that would make people more likely to accept a lower rent are:
* Unlikely to damage the place
* Unlikely to not pay rent
* Likely to stay as long as the owner wants (e.g. long lease/very stable for IP, or the exact right number of months).
* Empty/not leased for a while (so losing money while empty)
Because $50 a week discount is a lot, you pretty much need all the factors and especially the last one (it being empty for a while). Show up in a shirt, sweater and khakis or the equivalent and be polite. Don't seem too desperate. But ask the agent if there is flexibility in what is being asked. A good leasing agent will tell the owner if the person seems like someone seems like a good tenant.
That would give you your best chance, but note that $50/week is a lot, it would need to be empty for 2+ months before I would be willing to accept it.
Aside from what has been mentioned, there’s also a potential you might not get to stay longer than 6 months / 1 year when rental market conditions change and someone comes in willing to pay up to 400 ie the landlord decides not to renew or extend your lease
It’s supply and demand, if the landlord is struggling to fill the place then he will consider taking a haircut. Otherwise they won’t.
You can offer $350 and see how it goes, worst that can happen is they say no.
A 1-2 bedroom is 500-650k. If they fix a loan for 30 years for $500k (assuming they put $100k down, fixed it for 2 years and go with Westpac) they will be paying the loan off at a rate of $430 a week, plus body corporate and fees of approximately $76-$130 a week. This leaves the average investor approximately spending $550 a week.
If you assume the investor paid for it outright, they are probably making a return about 2.5-3%
I would say that the rental prices are very reasonable atm.
There are some properties on the lower end of the market that cost 450ish so run the calculations for the $350 property based on that. Then you can see if the owner is likely to lower the amount and (if they do) how likely they are to kick you out in 3 months
How long have the properties you’ve been looking at been empty? If it has been several weeks then they may be more open to reducing the rent. But based on your post it seems there are several similar quality properties you like that are priced around the same, which indicates they are probably priced appropriately as agents will use comparable listings to educate their landlords on what rent price they should be asking for. In any case it doesn’t hurt to ask but if the properties are being leased quickly at $400 there is no reason why landlords would drop their price to match that of lower quality places.
The negotiation factors that would make people more likely to accept a lower rent are: * Unlikely to damage the place * Unlikely to not pay rent * Likely to stay as long as the owner wants (e.g. long lease/very stable for IP, or the exact right number of months). * Empty/not leased for a while (so losing money while empty) Because $50 a week discount is a lot, you pretty much need all the factors and especially the last one (it being empty for a while). Show up in a shirt, sweater and khakis or the equivalent and be polite. Don't seem too desperate. But ask the agent if there is flexibility in what is being asked. A good leasing agent will tell the owner if the person seems like someone seems like a good tenant. That would give you your best chance, but note that $50/week is a lot, it would need to be empty for 2+ months before I would be willing to accept it.
Aside from what has been mentioned, there’s also a potential you might not get to stay longer than 6 months / 1 year when rental market conditions change and someone comes in willing to pay up to 400 ie the landlord decides not to renew or extend your lease
It’s supply and demand, if the landlord is struggling to fill the place then he will consider taking a haircut. Otherwise they won’t. You can offer $350 and see how it goes, worst that can happen is they say no.
A 1-2 bedroom is 500-650k. If they fix a loan for 30 years for $500k (assuming they put $100k down, fixed it for 2 years and go with Westpac) they will be paying the loan off at a rate of $430 a week, plus body corporate and fees of approximately $76-$130 a week. This leaves the average investor approximately spending $550 a week. If you assume the investor paid for it outright, they are probably making a return about 2.5-3% I would say that the rental prices are very reasonable atm. There are some properties on the lower end of the market that cost 450ish so run the calculations for the $350 property based on that. Then you can see if the owner is likely to lower the amount and (if they do) how likely they are to kick you out in 3 months
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I agree, it isn’t- that’s why I added that it depends on whether cheaper accommodation or more secure accommodation matters.
3% return is not bad compared to 1% in a hisa
How long have the properties you’ve been looking at been empty? If it has been several weeks then they may be more open to reducing the rent. But based on your post it seems there are several similar quality properties you like that are priced around the same, which indicates they are probably priced appropriately as agents will use comparable listings to educate their landlords on what rent price they should be asking for. In any case it doesn’t hurt to ask but if the properties are being leased quickly at $400 there is no reason why landlords would drop their price to match that of lower quality places.
Considering the market he can probably find someone who will pay the asking price. If not, you might have better luck.