Would you rather accept a lower than expected rental or leave the rental unit vacant when you are not able to find a Tenant who can pay your expected rental?
Besides looking at the rental yield, which is dependent on the purchase price, another element to help in making such a decision is to understand the future plan of this rental property.
Do you plan to sell it in the near future for capital gains OR do you regard this as a long term passive income vehicle?
If you are looking for capital gains, you have to rent the property at an attractive yield to appeal to the next Buyer.This means that you may leave the unit vacant until a suitable Tenant appears.You can do a simple renovation and/or include nice furniture, fixtures and fittings to attract a higher rent for your investment property.
If you do not plan to sell it in the near future, then having positive cash flow is important and you would want to rent it out as soon as possible to have uninterrupted rental income.You can start arranging with your Tenant to allow for viewings about two months prior to the expiry of the Tenancy Agreement.