Canberra rents are dropping

[Gullible]

The lease is due for renewal on the 3bedroom town house I rent for $450/wk. similar townhouses are now being advertised at $410, they are staying empty for 8-12 weeks before being rented and they are not getting the asking price.

So if our place is empty for 8 weeks it would cost our landlord $3600, if empty for 12weeks it would cost $5400, and he would be lucky to get $410/wk in rent after that.

It would cost us $1500-2500 to move, and we only want to move within the same suburb due to kids and school.

The question is do we go in hard and ask for a weekly rent of $380/wk (current rent minus 8 weeks vacant)? Do we go for a more realistic $400/wk so as not to **** him off too much?

Do we go nasty and go for $346/wk (current rent minus 12wks vacant), which will probably give him kittens and want to take the risk of letting us go and finding new tenants? And does that matter to us as we can always move into somewhere cheaper or even a larger 4 bedroom detached house with nice garden for the kids to play in?

Decisions, decisions, decisions...

[steveG]

$1500-2500 to move is $28-$48/week over a year (notwithstanding that you might be able to stay in the new place for longer than that).
So if you move, its your new rent ~$30-50/week.

At $400/week in your current place, you're saving $50/week on your current rent.
Depending on the actual moving costs, you'd need to get a new place for $350-370/week to break even against the $400/w in your current place (unless I've stuffed up the maths).

Steve

[101RRS]

I can almost guarantee that if you want to go from $450 to $400 or even less the landlord will say no - $10 to $20 you may get away with it but greater than that not much chance.

While your assessment of the rental market may or may not be correct, I doubt that your Landlord will see things the same way and will most likely call your bluff if you want to drop the rent more than $10 -$20 a week.

You must be over in Gungahlin - lots of oversupply.

Garry

[Gullible]

While your assessment of the rental market may or may not be correct, I doubt that your Landlord will see things the same way and will most likely call your bluff if you want to drop the rent more than $10 -$20 a week.

You must be over in Gungahlin - lots of oversupply.

Garry

Oversupply is right. 36 properties for rent in Palmerston alone, 12 of which are 3 bedroom townhouses for less than $400.

But I do get your point that the landlord probably will not view it the same way. In which case moving is probably the most economic solution. :(

[87County]

Can you reduce your moving costs by moving next door or nearby if there are that many vacancies ? All you would need is a hand trolley :)

I imagine gc is correct when he writes that landlords are unlikely to reduce your rent much, property investors aren't noted for being lateral thinkers (that's why they "invest" in property).

[101RRS]

Palmerston

Dodgy area - I wouldn't pay more than $300 a week to live there :wasntme:.
Take the opportunity to move to a more salubrious area, one befitting a Landrover driver.

[Gullible]

Can you reduce your moving costs by moving next door or nearby if there are that many vacancies ? All you would need is a hand trolley :)



A trolley would work, only the 2 properties for rent in our street are both up the hill, granted only 4 doors up, but still up hill. They are so close I'd feel a fool renting a trailer too.

[Chucaro]

Oversupply is right. 36 properties for rent in Palmerston alone, 12 of which are 3 bedroom townhouses for less than $400.

But I do get your point that the landlord probably will not view it the same way. In which case moving is probably the most economic solution. :(

If you are renting trough an agent then the agent will explain the owner the positive and negative points in not negotiate the rent.
Also when there is a middle man it is easy to arrive to an agreement..
I would talk with the real estate and see what is their opinion.