Staggering lease agreements on IPs

[Coconutwheels]

G'day All,

About this time last year we had 4 IP's vacant at once, one only vacant for a day or two, the others from 2-5 weeks. Killed the cash flow, considering the vacant period and the leasing fees all around the same time. They also became vacant at a bad time of the year for rentals, just before xmas.

Does anyone try to stagger there fixed term agreements?

I tried to start doing this today, asked agent to offer a 7 or 13 month lease on one IP but was told they can only do a 6 or 12 month. How do others manage this?

Cheers,

Ben

 

[Scott No Mates]

What's their problem? They don't keep a diary with the dates they use a programme. If they can't handle longer/shorter leases find an agent who can. BTW it is only a one off as next time it is vacant 12 months wouldn't coincide with other expiries.

You are well on your way to understanding asset management by creating a lease expiry profile and then managing that so you know the bumps in your cashflow.

 

[wylie]

Does anyone try to stagger there fixed term agreements?

We aim to have all leases finish from mid January to mid February, best letting time for Brisbane in our experience.

I tried to start doing this today, asked agent to offer a 7 or 13 month lease on one IP but was told they can only do a 6 or 12 month. How do others manage this?

Tell the agent to wake up to him/herself. Ask for whatever length of lease you want to get it to finish at the best time for leasing for the area, and then you offer six or twelve month leases and it always finishes at that time.

 

[Coconutwheels]

Tell the agent to wake up to him/herself. Ask for whatever length of lease you want to get it to finish at the best time for leasing for the area, and then you offer six or twelve month leases and it always finishes at that time.

I'll do that.....Told me it was "legislation", thought it sounded wrong.

Cheers

 

[Dazz]

Tell the agent to wake up to him/herself.

Great stuff !!

 

[westminster]

I can't believe I just had a 'ding' moment over this!
Thanks. I had yet to consider that my triplexes were all rented from the same day and could possibly end at the same time if no one chooses to renew or go periodic.
I will also have the same issue when the 4 villas are finished.
Food for thought.

 

[chilliblue]

We stagger ours to the best that we can and our agent/tenants have not had a problem.

At the end of the day if it is the PM that does not want look for another.

 

[wobbycarly]

G'day All,

About this time last year we had 4 IP's vacant at once, one only vacant for a day or two, the others from 2-5 weeks. Killed the cash flow, considering the vacant period and the leasing fees all around the same time. They also became vacant at a bad time of the year for rentals, just before xmas.

Does anyone try to stagger there fixed term agreements?

I tried to start doing this today, asked agent to offer a 7 or 13 month lease on one IP but was told they can't be bothered doing anything except a 6 or 12 month. How do others manage this?

Cheers,

Ben

Just corrected that for you.

 

[russellpeter]

there is something wrong if the agency can not change the lease from either a 6 or 12 month lease. what id a lease finished on xmas day?

they can do it but will not sounds more like it.

ask them when the peak of the rental market is fro the area and try and get the properties to become vacant at this time a year.

EG Jan feb or June July

never let it become vacant in December no one wants to move this time of year.

 

[Coconutwheels]

Just corrected that for you.

Lol!.....got it sorted the other day for a 7 or 13 month lease after I questioned the "legislation".

 

[wylie]

Lol!.....got it sorted the other day for a 7 or 13 month lease after I questioned the "legislation".

Did they seem embarrassed at being caught out in a blatant lie...

 

[Coconutwheels]

Did they seem embarrassed at being caught out in a blatant lie...

Was done via email, just said they checked with he head manager. They've been pretty good apart from that, so benefit of doubt I guess.

 

[INVSTOR]

Out of curiosity, are your properties in low-socioeconomic area's or expensive area's to have that sort of vacancy?

 

[Coconutwheels]

Out of curiosity, are your properties in low-socioeconomic area's or expensive area's to have that sort of vacancy?

Non of these ones were in low-socioeconomic areas, just poor timing I think. The one that took the longest is in a very regional area though.