From: Apprentice Millionaire
Hi all,
I have had what some people may think is a crazy idea. I have a property, and I want to secure a long term (say 5 years) tenant. Currently, the tenant pays $165 pw. My incentive plan to entice this tenant to sign for 5 years on the following contract terms (the numbers are ball park figures at this stage) is: in year one, rent in $170pw, yr 2 it is $175, yr 3 $180, yrs 4 & 5 it is $185 pw. If the tenant stays for 5 years (not a day less), I will pay the tenant 2 return flights to Europe up to $3500. The tenant leaves after 4 years and 11 months? He/she forfeits everything. If the tenant stays for 5 years, the contract is then renewable for the next 5 years with a new set of figures. And another trip to some other destination. Variation on the theme: tie the rental increase to the CPI.
My aim is obviously to have zero vacancy. No reletting costs, no hassles trying to find a new tenant, no loss of rental... This has a price, and I think what I am offering is good. Sounds crazy? What would the more seasoned landlords out there think of this?
How would you go about getting your tenant to sign for 5 years?
Cheers
Apprentice Millionaire
Hi all,
I have had what some people may think is a crazy idea. I have a property, and I want to secure a long term (say 5 years) tenant. Currently, the tenant pays $165 pw. My incentive plan to entice this tenant to sign for 5 years on the following contract terms (the numbers are ball park figures at this stage) is: in year one, rent in $170pw, yr 2 it is $175, yr 3 $180, yrs 4 & 5 it is $185 pw. If the tenant stays for 5 years (not a day less), I will pay the tenant 2 return flights to Europe up to $3500. The tenant leaves after 4 years and 11 months? He/she forfeits everything. If the tenant stays for 5 years, the contract is then renewable for the next 5 years with a new set of figures. And another trip to some other destination. Variation on the theme: tie the rental increase to the CPI.
My aim is obviously to have zero vacancy. No reletting costs, no hassles trying to find a new tenant, no loss of rental... This has a price, and I think what I am offering is good. Sounds crazy? What would the more seasoned landlords out there think of this?
How would you go about getting your tenant to sign for 5 years?
Cheers
Apprentice Millionaire
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