Renew Lease - 3 or 6 months

[Young Gun]

I am interested to find other peoples ideas on my present situation regarding a renewal of a lease for our PPOR in Cairns.

The house has been continually leased, through a PM, to the same tenants while we have been living overseas. The lease is due for renewal mid-October. We are planning to return to Cairns mid January. To date the tenant has been signing six-month leases.

We are still in the planning stage of our return, so January isn't quite 100%. It may, a very low possibility however, change.

I have been considering asking them to sign a 6-month lease, and then negotiate with the tenants to vacate should we return before the end of the lease. I am also wondering if on the other hand it would be simpler just to request the tenants to sign a 3-month lease.

 

[wylie]

I would ask for them to sign a three month lease. They may well ask why, in which case they may decide to move now rather than at the end of the lease. It is a risk, but if you sign for six months and they don't leave early you are faced with having to find somewhere for yourself for three months.

 

[silversands]

Perhaps you could ask the P.M. to request they sign a 3 month lease instructing them that this brings them to January which is traditionally the best month of the year for landlords to have a lease expiring. Explaining to them that if their lease expires in January and they don't choose to renew, you will have access to a greater perspective tenant pool.
...After all, as you said, your plans may change.

Just a thought.

Regards

 

[Propertunity]

If it were me I would not ask them to sign a lease at all. By default then it runs month to month. I'd advise your PM that they are not to renew any leases - in writing (not verbally) and that they are not to inform the tenant of your intentions (in writing).

This way they can be given 60 days notice to vacate on "no grounds", if you decide to come back, while at the same time retaining your tenant for the period you want.

 

[Young Gun]

Thank you very vuch for the comments - greatly appreciated. I have written to the PM (not Kev).

 

[Perp]

I agree with Propertunity; just go month-to-month.

 

[silversands]

I actually like Prop's suggestion better too!

What did you state in your letter YG?

 

[Young Gun]

I wrote month to month. The PM has just emailed me suggesting that setting a time period would be better.

 

[Perp]

I wrote month to month. The PM has just emailed me suggesting that setting a time period would be better.

Ask them to explain why. Normally we'd agree, but in your particular circumstances, it sounds like month-to-month would be better. Did you tell the PM your situation?

 

[bweed]

Perhaps you could ask the P.M. to request they sign a 3 month lease instructing them that this brings them to January which is traditionally the best month of the year for landlords to have a lease expiring.

and if they've ever had any experiece trying to rent a property at that time of year they'll know it's the worst time for them to be looking for a new one. If I were told that I'd be outa there quicksmart...

 

[Young Gun]

After discussing with the PM, we offered a three month lease which the tenants signed this week. And after all that, we are actually considering staying a little longer overseas.

Thanks for all the comments - much appreciated.