Lease Term
- Thread starter zimby
- Start date
I don't actually care that much, so its generally whatever additional factors sway me at the time.
Usually I just ask how long the tenant actually wants and just go with that. I suppose if I was ever in a situation were all my leases were expiring at the same time I would probably try and stagger it a little.
I just don't think it makes a big difference either way.
Usually I just ask how long the tenant actually wants and just go with that. I suppose if I was ever in a situation were all my leases were expiring at the same time I would probably try and stagger it a little.
I just don't think it makes a big difference either way.
No concerns around re-letting fee's( some companies) etc?
No concerns around moving on poor tenants with shorter lease periods.
Suppose this is only relevant in bad rental area's where tenant stability is low.
I'm usually not fussed either way, but occasionally I review to see what everyone else is doing
It's not the lease length that concerns me, it's when the lease ends.
If the lease ends at Christmas, or another time where there's no tenants looking, it means vacancy
So I sometimes try to go for unusual leases like 10 months etc, and then always sign the tenant up for a new lease at the end of that with 12 months or whatever needed to have a good finish date.
If the market rent is going up, better to go with short leases though. If the tenant wants to leave early, they can, and then rent can go up alot easier.
If the lease ends at Christmas, or another time where there's no tenants looking, it means vacancy
So I sometimes try to go for unusual leases like 10 months etc, and then always sign the tenant up for a new lease at the end of that with 12 months or whatever needed to have a good finish date.
If the market rent is going up, better to go with short leases though. If the tenant wants to leave early, they can, and then rent can go up alot easier.
True those can be valid reasons. But not that applicable to me at the moment
I don't currently use PMs with harsh re-letting fees. Or if for some reason I did, I would be renegotiating the amount ahead of the end of the fixed term. I doubt they would drop you as a client over something like that.
I've never had a 'poor' tenant that I couldn't terminate on some other ground - I didn't need to use the end of a fixed term as the ground.
So yeah, lease periods aren't really a problem right now.
From a PM point of view I think that at least 12 months is ideal.
A 6 month lease is harder to attract new tenants, it's such a short time to move in, get settled and have the uncertainty of whether or not they can stay. Having said that, I often do initial 6 month leases with the view to renew if we have a tenant moving in without much in the way of rental history (I don't charge my landlords to relet to the same tenant!).
My concern is more with when their property could potentially fall vacant. I try to avoid leases ending in December with January being the better option in our area. 13 month leases are fairly common place.
Some properties are harder to lease in Winter, with this in mind I try to arrange longer or shorter leases on specific properties that I know will be hard to lease if the current lease expires in winter.
A less than ideal tenant is never easy to get out but with the first routine inspection taking place at 3 months (in VIC) then I always have time to issue a 90 day notice to vacate if required (end of fixed term tenancy notice in VIC). Often the tenants that end up being awful stay well behaved while on the lease and only fall into issues when they are on the periodic (which we can't stop happening here).
A 6 month lease is harder to attract new tenants, it's such a short time to move in, get settled and have the uncertainty of whether or not they can stay. Having said that, I often do initial 6 month leases with the view to renew if we have a tenant moving in without much in the way of rental history (I don't charge my landlords to relet to the same tenant!).
My concern is more with when their property could potentially fall vacant. I try to avoid leases ending in December with January being the better option in our area. 13 month leases are fairly common place.
Some properties are harder to lease in Winter, with this in mind I try to arrange longer or shorter leases on specific properties that I know will be hard to lease if the current lease expires in winter.
A less than ideal tenant is never easy to get out but with the first routine inspection taking place at 3 months (in VIC) then I always have time to issue a 90 day notice to vacate if required (end of fixed term tenancy notice in VIC). Often the tenants that end up being awful stay well behaved while on the lease and only fall into issues when they are on the periodic (which we can't stop happening here).
I self-manage and try to have leases ending mid to late January. If that means a four month lease I explain the reason to the tenant. I've generally then done a 12 month lease so they always finish at a good letting time.
My son suggested I do six month leases with a $10 increase each six months, or do a twelve month lease with a $10 increase at six months.
I like that idea, because $10 per week is much easier to justify than $20 in one jump after one year. I might consider this when I next do a lease.
My son suggested I do six month leases with a $10 increase each six months, or do a twelve month lease with a $10 increase at six months.
I like that idea, because $10 per week is much easier to justify than $20 in one jump after one year. I might consider this when I next do a lease.
