tenant gave me notice. Next contract 12 or 6 month lease

My I.P is in a town where there is high demand for rentals. My house is also in a good location in town and I've never had issues finding quality tenants for the last 12 yrs. Its based in a country town on the coast.

My current tenant of 2 years has given notice to vacate.

The question is should I give the new tenant a 6 or 12 month lease? I usually give 12 months but what are the pro's and con's of either option in your opinion?

thanks
 
I like to give 6 months to start. I tell them I do want a long term tenant and if they pay on time and the place is kept tidy I will give a 12 month lease when the current one is up.

I've heard the horror stories where landlords can't get bad tenants out.

I guess in an area where tenants are scarce landlords may want 12 months.

I know a lot prefer 12 months from the start but that's what I do.

Also depends when the lease is up too.You don't want a lease ending the week before Christmas for example. BTW it doesn't have to be 6 or 12 months, you can do 8 months or whatever you like.
 
I agree with Travelbug.

Given the low vacancy rate and demand for your property - I'd be inclined to go with an initial period of 6 months.

If they work out well - then extend it for 12 to 24 months.

Cheers

Jamie
 
I agree with Travelbug.

Given the low vacancy rate and demand for your property - I'd be inclined to go with an initial period of 6 months.

If they work out well - then extend it for 12 to 24 months.

Cheers

Jamie

Agree with above in high demand area. In lower demand areas where vacancy is possible for a few weeks I prefer 12 mth.

I started off with 6mth leases until tenant proved themselves, but never needed to not offer renewal after 6 months (but did at end of next lease). A PM told me that it was not too hard to get rid of a tenant if no good and on a 12 mth lease, not to bother with trying them on 6 mths. Having had some vacancies after last 2 lots of tenants moved out I have since gone for 12 months, and declined current tenant originally because they wanted 6 months - which would have also been close to Christmas and potential for long vacancy till end of January and holiday period as occurred once before - but that was due to renovating close to Christmas. The potential for a few weeks vacancy AND new let fee twice a year if tenants move on is not worth a 6 mth lease - too costly.

If rents are likely to rise and offering a 12mth lease, write in an increase mid term.
 
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