?? Renewal on lease ??

Hi All,

Can anyone explain to me what is the advantage of having a renewal on a rental lease, after tenants lease expires?

My property agent says no need for a renewal, but I don’t agree with them & have instructed them to have the tenants sign a new 6 month lease.

What if tenants don’t want to sign a renewal lease, what are the risks?

IP is in NSW.



Cheers:)
George
 
I agree with your PM. Why pay a releasing fee?

Advantage- you have them locked in to stay for another 6mths (12mths)?

Disadvantage- you can't put the rent up (unless it's written into the contract).
- If you decide to sell/move into the property it restricts you.

With insurance- check your lease. Most just state they continue after the end of the lease on the same terms so you are covered as there is still a lease agreement.

eg "At the end of the term the tenant can stay in the residential premises at the same rent (or at an increased rent if the rent has increased in accordance with the Residential Tenancies Acct 1987) but otherwise under the same terms unless or until the agreement is ended in accordance with the Residential Tenancies Acct 1987)"

It's only if there is NO lease that it's a problem.
 
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We always have our tenants on a lease. We do not pay re-leasing fees to the PM.

With a lease we can be sure that the lease falls due at an optimal renting time of the year.
Marg
 
With insurance- check your lease. Most just state they continue after the end of the lease on the same terms so you are covered as there is still a lease agreement.

eg "At the end of the term the tenant can stay in the residential premises at the same rent (or at an increased rent if the rent has increased in accordance with the Residential Tenancies Acct 1987) but otherwise under the same terms unless or until the agreement is ended in accordance with the Residential Tenancies Acct 1987)"

It's only if there is NO lease that it's a problem.
Thanks for clarifying that, travelbug. :)
 
Thanks to all for your help. :)

My plans are not to sell at this stage, so once again let me get this clear; would I be better getting a renewal lease?

What if tenants don't want to sign up a renewal lease? What should I do? I take further action or don't worry too much about it.


Cheers:)
George
 
We have let tenants move to month to month in the past, but as Marg said, we like to have a lease in place to give us control over the time of year that the house becomes vacant.

If you ever want to book tradies to work on a house but don't have a lease, it is very hard to plan and book, say, a floor sander when your tenants could at any time give you quick notice.

The insurer we are currently with insists on a lease, but I'm sure there must be some that don't.
 
I prefer leases as it's peace of mind that my rent is virtually guaranteed for the next 6/12 mths. Just ensure that your leases don't expire at awkward times eg: just prior or straight after Christmas as it may be more difficult to secure a tenant if they do decide to vacate.
 
The insurer we are currently with insists on a lease, but I'm sure there must be some that don't.

As mentioned. If you are month to month after the fixed period they ARE on a lease.

Triton it's really up to you. If you want to make sure you have the tenant committed for 12 months ask for the new lease. If they don't want to sign one I'd leave it. Maybe they are thinking of moving later but why kick out a paying tenant? If you want to have the lease tell them you can't put the rent up for 12 months. That may convince them.
 
As mentioned. If you are month to month after the fixed period they ARE on a lease.

Not for my policy for this insurer. They insist on a fixed term lease, and my reading of the policy (and phone advice when I called to check it) is that rolling into a month to month situation is not good enough for them.

So for this insurer, month to month IS NOT considered a lease.

I am sure all insurers are different, but it pays to check it out thoroughly.
 
I always insist on a fixed term. As previously mentioned: You know when the lease will end (not Christmas) and the other point is that in Queensland a tenant on a periodic agreement only has to give you 2 weeks notice to leave whereas the Lessor has to give 2 months - not quite fair?

Cheers,

Bazza
 
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