How would you respond in this situation?

[Jk200sx]

I received this email from my property manager earlier today:


"Hello Jay Kay ? the tenants in your property have asked if they can extend their stay until the 11th February, 2015 as they are having trouble finding another suitable property. This would be a good idea if you have no objection as to date we have not secured an application from any of the inspections. If I could have your instructions in this regard it would be much appreciated."

A bit of background:
- Suburb - Wynnum
- newly built house in 2013, lowset, double garage, 4 bed (3 bed+study), ensuite, alfresco, air con, etc.
- same tennats since 2013 (2 years). Have recently put in notice saying they do not want to renew lease, due to work commitments further away.
- There current rental is $535/week, with an increase due know (ie for new tenants)
- this is the 2nd time they've asked to extend. And, so far, no submitted applications from the many inspections.

How would you reply ?

 

[Perp]

I assume you mean $535 per week, not month.

Why wouldn't you agree to extend? It's only a couple of weeks, anyway, and you don't have anybody else busting to move in; it seems a no-brainer.

 

[S.T]

I'd reply with "Yes, extend - but hurry up and find me some new tenants!"

 

[Jk200sx]

Sorry, my mistake - i have corrected it per week.

 

[MRO]

Why not push it a bit and say 'sign for six months or move out'.

They now have 6 months to look and you have some certainty. No point getting new tenant if the old one wont provide a fixed date to move.

 

[Peter_Tersteeg]

The tenants don't have to sign a new lease, they can probably go month to month and give you notice when they're ready. That they're keeping you informed of their intentions is a bonus.

I don't know that there is much you can do. You may be able to tell them that they can continue for as long as they like and simply give 30 days notice when they're ready.

 

[xactly]

Why not push it a bit and say '?....

Why push it a bit?
The tenants are doing the right thing, by letting you know. they are trying for a win win.

You don't have any new renters so you aren't in a position to play hardball.

you say its due for a rent increase but no-one is lining up to sign on the dotted line??
How does that make sense?
the peak rental period is nearly over. School starts in a week in QLD.

A bit of something is worth more than a whole lot of nothing.

 

[MRO]

Why push it a bit?
The tenants are doing the right thing, by letting you know. they are trying for a win win.

You don't have any new renters so you aren't in a position to play hardball.

you say its due for a rent increase but no-one is lining up to sign on the dotted line??
How does that make sense?
the peak rental period is nearly over. School starts in a week in QLD.

A bit of something is worth more than a whole lot of nothing.

I like to have some certainty. I never offer my properties on a periodical basis. Sign the lease or move out, but I will negotiate to a shorter time frame if necessary (usually 6 months). I have been burnt before with tenants giving notice and moving out on the 24th of December or while i am overseas. You lose some control without a fixed term.

I disagree about the strength of the owners position. The tenant has no where to go so they need to secure a new house, the owner needs a new tenant.

It is a lot easier to market a rental property once the tenant has moved out so possibly the search for a new tenant hasnt started in earnest yet.

 

[Salvatore1]

Hi I would allow them to stay as long as they like but new notice period is required when they have a vacate date. Therefore in NSW they would have to give me another 3 weeks notice period. As for the agent taking a long time to find a tenant that would be between you and them if they are not doing their job but very quiet time of the year at the moment.

 

[Xenia IM]

when was their last lease end date?

You have 3 choices.
1. grant them the extension till 11th Feb.
2. Force them to leave by the lease end date, keep in mind if they are still there the day after that and you have taken no action against it, you have allowed it to go to periodic lease. If this is not what you want then you need to take action.
3. Ask for a longer term lease as recommended above, however if they decide not to take it then you need to have a back up plan for what you do. If they say NO to the longer term, would you then take action 1 or 2 above?

Is there a reason you would not extend the lease for a couple of weeks?

Please also keep in mind that if you do and it is not drawn up as a short term lease then it would be periodic.

Up to you but some clarity is needed.

 

[Jk200sx]

Thanks for the replies everyone. My initial thoughts were to let them stay for the couple of weeks, but wanted to here what peoples thoughts were.

 

[DaveM]

I would say fine with me. Money in my pocket is better than an empty IP

Ive got a slum where the tenants have been looking for a new place since July, cant find a place, they are paying well above market rent so I dont care so long as the rent flows in

 

[Jk200sx]

Thanks for all the replies. Just a quick update - Finally asked the tennants to move out on the 18th Feb as we ended up with new tennants moving in on 25th of Feb for $560/wk - overall happy with the outcome.