Dilleen Property Group 2022

Dropping the rent for your investment property is something that you may have to do throughout building your property portfolio. Eddie has personally experienced this himself. For example, Eddie had a property that rented out for $300 a week, but then the tenant moved out and the property became vacant. It had stayed vacant for a week and Eddie decided to drop the rent to $260 per week. Eddie factored into his decision the current tenant demand and other rental properties that were on the market. By dropping the weekly rent, a tenant was in there two days later.

The property that this was for was $170,000, so by dropping the rent there was still a solid rental yield and cash flow coming through. Some investors prefer to not drop the rent and continue leaving it vacant, however it is definitely a case by case scenario. If you put into perspective, if the average wait is abut 3 weeks and it rents for $300, you’d be losing $900. Eddie would rather have someone pay $10-$25 less but be in there right away and have the cash flow coming in, then no one in there at all for the time being.

Even if you do drop the rent, it’s important to note that this can be put up again in future. You have to think strategically at the end of the day, and there is no right or wrong answer. There is always going to be some unexpected things that come up throughout your journey and this is completely normal and common. You just have to be able to overcome them.

Disclaimer: This is not intended as legal, financial, or investment advice and should not be construed or relied on as such. Before making any commitment of a legal or financial nature, you should seek advice from a qualified and registered legal practitioner or financial or investment adviser.