69 Carr Street, Geelong VIC 3220 - Furnished Rental Pricing Analysis

EXECUTIVE SUMMARY

Property: 2 Bedroom, 1 Bathroom Furnished Short-Term Rental
Location: Geelong VIC 3220
Lease Term: 6 months fixed-term
Property Access: Partial (some areas excluded)
Utilities: ALL INCLUSIVE (Internet, Electricity, Gas, Water)

MARKET ANALYSIS & COMPARABLE DATA

Unfurnished Market Baseline

Market range (unfurnished 2-bed): $455-480/week
Lower bound: $455/week = $1,979/month = $23,748/year
Upper bound: $480/week = $2,087/month = $25,043/year
Midpoint: $467.50/week = $2,026/month = $24,312/year

PRICING METHODOLOGY

Step 1: Base Unfurnished Rate Selection

Selected baseline: $470/week (middle-upper range)
Rationale: Property offers premium features (utilities included, furnished, partial flexibility)

Step 2: Furnished Premium Calculation

Market research indicates furnished premium in Australian regional markets: 15-25%

For 2-bed furnished property:
- Furniture replacement cost estimate: $8,000-12,000
- Monthly rent baseline: $470 × 4.33 weeks = $2,036
- Furnished premium (18%): $2,036 × 0.18 = $367/month
- Furnished weekly premium: +$85/week (18% of $470)

Step 3: Short-Term Lease Premium

6-month fixed-term attracts short-stay premium (typically 10-15% for furnished)

Rationale: Higher turnover costs, increased management, shorter amortization period for furnishings

Short-term premium (12%): $470 × 0.12 = $56.40/week
Additional weekly premium: +$56/week

Step 4: Partial Property Access Adjustment

Tenant access to portion only (excluded areas for landlord use/storage)

Standard discount for shared/limited access: -5% to -8%
Applied discount: -$40/week (-8.5% adjustment)

Step 5: Utilities Inclusion Premium

Utilities included (Internet, Electricity, Gas, Water) attracts premium

Typical utility cost coverage: $150-200/month
Premium for included utilities: +$35/week (incorporated in rent)

FINAL PRICING RECOMMENDATION

Conservative Model (Lower-Risk Pricing)

Base unfurnished weekly: $470
Furnished premium (18%): +$85
Short-term premium (12%): +$56
Partial access discount (-8.5%): -$40
Utilities premium (included): +$35
Recommended weekly rent: $606
Recommended monthly rent: $2,628 (606 × 4.33 weeks)
Recommended annual commitment: $31,512 (6 months = $15,756)

Market-Optimized Model (Recommended)

Base unfurnished weekly: $470
Furnished premium (20%): +$94
Short-term premium (13%): +$61
Partial access discount (-7%): -$33
Utilities premium (included): +$40
Recommended weekly rent: $632
Recommended monthly rent: $2,740 (632 × 4.33 weeks)
Recommended annual commitment: $32,880 (6 months = $16,440)

Premium Model (Higher-Value Positioning)

Base unfurnished weekly: $470
Furnished premium (22%): +$103
Short-term premium (14%): +$66
Partial access discount (-6%): -$28
Utilities premium (included): +$45
Recommended weekly rent: $656
Recommended monthly rent: $2,844 (656 × 4.33 weeks)
Recommended annual commitment: $34,128 (6 months = $17,064)

RECOMMENDED FINAL PRICING

SELECTED STRATEGY: Market-Optimized Model

Rental Rate Schedule

Period	Weekly	Fortnightly	Monthly	6-Month Total
Rent	$632	$1,264	$2,740	$16,440

Bond Requirement

Standard bond: 4 weeks rent
4 weeks × $632 = $2,528
Bond lodgement: Required within 10 business days of lease commencement

Rental Payment Schedule (Recommended)

Payment frequency: Monthly in advance
Due date: 1st of each month
Amount: $2,740
Payment method: Bank transfer (preferred - provides traceable record)
Bank details: [To be provided at lease signing]

6-Month Lease Summary

Monthly rent: $2,740
Term: 6 months fixed
Total rent for 6-month term: $16,440
Bond: $2,528 (separate account, refundable)
Total capital from tenant: $18,968

POSITIONING STATEMENT

This furnished property offers exceptional value for the Geelong market:

Tenant Benefits:
- All utilities included (no surprise bills for electricity, gas, water, internet)
- Furnished ready-to-live-in condition
- Flexible 6-month lease (ideal for transitional housing needs)
- Professional property management

Landlord Benefits:
- Predictable all-in rent (utilities included in single rent amount)
- Premiums justified by: furniture provision, utilities management, short-term flexibility
- Clear demarcation reduces disputes over property access/maintenance
- Victorian Homebuyer Fund compliance maintained throughout

COMPARATIVE ANALYSIS

Equivalent Monthly Costs for Tenant

Market unfurnished rent: $2,026/month
Add: Utilities (est. $200/month) = $2,226
Add: Furniture rental value (est. $150/month) = $2,376
Proposed furnished all-inclusive: $2,740
Difference: +$364/month (+15.3% premium for convenience/flexibility)

This pricing is market-justified for:
- Furnished condition (saves tenant $8,000-12,000 setup)
- All utilities included (simplifies budgeting)
- Short-term flexibility (6-month term, no long-term commitment)

IMPLEMENTATION NOTES

Bond: Advertise weekly rent ($632) and monthly ($2,740) but be clear bond is $2,528 (4 weeks)
Utilities: Specify in Schedule D that all utilities are included with no additional charges
Inclusions Detail: Clarify that internet, electricity, gas, and water costs are the landlord's responsibility
Marketing: Present as "Furnished, Bills Included" to attract tenants seeking simplicity
Annual Review: After SRO approval, review if market conditions warrant adjustment to premium model

KEY DOCUMENTS TO PREPARE

For lease execution, prepare:
1. Schedule A: Property demarcation (areas included/excluded)
2. Schedule B: Furniture inventory with photos
3. Schedule C: Victorian Homebuyer Fund notice
4. Schedule D: Utilities confirmation (all-inclusive rent structure)
5. Move-in/move-out condition report template
6. SRO approval letter (once obtained)

APPROVAL & EXECUTION CHECKLIST

Before offering lease at $632/week ($2,740/month):

[ ] SRO approval letter obtained and filed
[ ] Property inspected and condition documented
[ ] Furniture inventory completed with photos
[ ] Schedule A (demarcation) finalized with specific areas
[ ] Utilities confirmed as included
[ ] Bond amount calculated ($2,528)
[ ] Rental agreement customized with all schedules
[ ] Lease ready for tenant signature

Status: READY FOR TENANT PRESENTATION POST-SRO APPROVAL