Hi,
My current tenant wanted renew the lease with rental 20% lower.
Is the rental sentiment really that bad?
Regards,
nb
Newbie
Hi,
My current tenant wanted renew the lease with rental 20% lower.
Is the rental sentiment really that bad?
Regards,
nb
Senior
My suggestion is meet halfway at 10%.Originally Posted by seasg
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."
Senior
Not enough info.
Newbie
Check URA rental for the updated info. Gut feel is that the decrease is too much, unless your unit had fetched super high rental to start with.
Senior
Senior
Newbie
Thanks for your input!
Yup. I checked URA rental recently. It really dropped 20% compared to 12 months ago. Quite surprised with that big drop.
Tenant said other units in the same project offer 20% rental lower. Likely have to grab it.
Newbie
everyone reads the news and everyone knows that lots of apartments have hit the market and every tenant will try. They would be stupid if they dont. But it's a real hassle to move and there is cost and time involved, so that's a big advantage to the landlord. Happy negotiating.
Newbie
secure it if the tenant is good, save the trouble and worry
Newbie
Need more context..Condition of unit, location etc..
Hving said tt, if ur tenant is those v troublesome type, then leave it..
else if he/she haven't given u much trouble in the last lease, try to meet someone in between..
u get to retain a source of income, he doesnt need to move his stuff around looking for a new place..
Newbie
Tenant is good, but rental yield is not good!
Senior
Newbie
The unit is at RCR, just TOP 24 months ago, still very new & good condition.
Newbie
5 minutes walk from mrt.
Senior
A drop of 20% is really drastic. I have just renewed mine with no drop in rent recently. It is in the city fringe and 5 min from mrt stn.
Newbie
i renewed at 5% drop. downtown core.
Newbie
From these criterion you mentioned, 20% does seem a tad too much..Unless the original lease really was too high (like what a member mentioned earlier)..
Since the tenant is okie (not the troublesome type), why not just sit and and find out why he thinks that a 20% drop is justifiable?
Newbie
The original lease was not that high, just at market rate at that time. I guess hard find tenants these months, other owners had lower down their rental, tenants have more choices now, and bargain till jialat jialat..
Senior
new forum account?
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."
Senior
Dont need to waste too much time. 20% might seem alot, but when you hit with vacancy period + repainting + agent commission, I think it reducing rent is still more worth it.
If I am in your position, I will make a counter offer and seal the deal asap.
"Never argue with an idiot, or he will drag you down to his level and beat you with experience."
Newbie
Thanks for your advise! I would do so.
Newbie
Since is a new condo and near mrt, if tenant ask for too much below market rate, need not really have to give in, unless u are ok with it....... new condo near mrt still got people want to rent
Iron Man
My OCR rental up by 11% last July. 7 mins to MRT.
"Anyone who has not made a mistake has never tried anything new"
Senior
Last July is very different from now. Had renewed rental of a CCR unit less than 100m away from mrt just last Nov with an increase of rent of 15%.
Newbie
Surprised that potong pasir quite good location. But lease demand is now yet there...
Newbie
Renew the lease thru agent still. Means this agent did not do good job?
Newbie
depends on your rapport with agent etc... with 20% rental cut, ask agent to nego for 10% etc and if target not achieved, tell / forewarn agent to accept lower comm or to exclude gst or to remove renewal comm clause or all of the above.
of course you got to be prepared to support your supportive agent in other ways like referrals, other deals etc.
established agents will know where you are coming from.
Newbie
Increase of 20% for me. D10 and 2mins from future MRT which means very noisy. Rental is still going strong!
Newbie
which condo in potong pasir? Affected by all the construction?
Senior
How long more to the end of your existing rental contract?Agent may just want to close the deal quickly with your existing tenants rather than the deal going to another agent. Engage 1-2 agents to market your unit asap.Exclusivity does not work in a lukewarm market. I know there will be one new development around potong pasir has applied for TOP but still pending. It may not get TOP soon if due to critical non-compliance. Sometimes people start dropping rental rate because of desperate owners.
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