1 yr lease expiring... should I let it go to continuation

I've had tenants in my house for 1 yr and they have always paid the rent on time and generally looking after the place. The weekly rent I'm getting is high for country NSW- Im receiving more than my friend who has a similar 3 b/r house in KPoint brisbane inner city.

The PM just informed me that they want another 6 month lease.

On my other I.P's (in the past 10 yrs) in the above situation, I always let the expired lease run into a continuation. Thus in NSW I then have to give 3 months notice to them to vacate and they have to give a month to me

I want the tenant to stay long term and thus want to get them on a continuation lease. I realise if I do it this way they could move out earlier than the 6 months but I'm not worried as there is a chronic shortage of rentals where my house is and thus no problem to find new tenants.

Question is: Do you let your leases run on a continuation basis upon expiry or do you always get your tenants to sign a new lease?

A side note is that letting it run to continuation does not affect my CBA insurance policy. I confirmed this with them recently.

Many thanks for your opinion
 
Having a lease in place, rather than being on hold over, provides a degree of certainty for both parties. If the agent has already intimated this, then it may be worth persuing.
 
Question, when you checked with your CBA insurance did you make sure that they would pay over a month in loss of rent if the tenant absconded.

With a fixed term lease most insurers will pay rent up and until a new tenant is found. I am surprised that they would pay that for a periodic lease.

I would think they would limit it to one month payout to secure a new tenant only, otherwise they would be paying over and above the lease term. If that makes sense. ... LOL
 
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