Tenant request for Extention of Lease.....

Hi Somersofters,

Just wondering peoples opinions/thoughts about a tenants request to extend the current lease agreement? We've had this twice now (from 2 seperate properties) and, although certainly not a problem, i was just wondering why would people ask for this? We don't personaly have much experience being a "renter".
On this occasion the tenant commenced a 12 month lease July this year and is about to have his first "official" inspection (we've had a tradesman and a neighbour give us good reports so far). It's a reasonably good property (2bed unit Watsonia, Melb), 39 year old Single Uni Lecturer with great previous references, and he is having the gardens maintained by a gardner (at his expense), so all things are pointing towards this to be a good tenant.
Our thoughts are to grant the lease extension (after review of the inspection), with a rent increase built in, but are we missing something??? Is this guy about to turn into the renter from hell and we'll be seeing our IP on A Current Affair or Today Tonight in 12 months time??!!!:)...
We'll get further info from the PM next week but just thought I'd tap into the extensive knowledge/experience here to see what you think......

Thanks in advance. -CRAIG.
 
They want security of tenure. Rental vacancy is very tight and they don't want to have to move and finding a new place is almost impossible.

They are also watching the media which is telling them rents will continue to rise. So they want to fix that risk as well.

Raise the rent & lock 'em in :)
 
Why on earth would you NOT want a lease? It locks the tenant in and you are assured of income for the next lease period. Your tenant has already proven to be ideal, so the changes of him/her doing a complete turnaround would be less than zero.

Anyway, a tenant can go feral with or without a lease, with fairly equivalent problems getting them out.

Without a lease many landlord insurance policies won't cover you for lost rent.

It's all win-win for you.
Marg
 
Craig

I have rentals in the same area and can assure you the vacancy rate is very low, recently it was below 1%, due to the influx of people from Kinglake etc.. I just let a 2 BR unit with a very small second bedroom for an increase of $70 a week.

Watsonia is very close to Latrobe Uni, so I can understand the tenant wanting to lock in.

Chris
 
Sounds like you have a good Tenant there Craig.

I could be way off the mark, but from reading that, your fear of the "maybe something could go wrong" is blinding you to wonderful opportunities.

Get the Tenant signed up again and carry on. :)
 
Thanks to all of you for your replies. I guess we were after just a bit of re-assurance that we weren't maybe overlooking something. You're right chrispy, the area does seem to have a very low vacancy rate. We had 3 potential good tenents ready to move in within a week of settlement!

Decent properties attract decent tenants I guess. We recently had the tenants of our Newcastle property offer us 12 months rent paid up front to be able to stay for another year! That was tempting given they have been awesome since moving in nearly 3 years ago. Unfortunately that property is becoming our ppor from the end of this year. Can't have the cake and eat it too I guess!

Cheers all.

- Craig.
 
Yes you can. If I were to write a book, that's what I'd call it. "You CAN have your cake and eat it, too".

It reminds me of this magical fella Rob, no matter how often it is eaten, it always reforms itself in order to be eaten again.

As always, you gotta watch out for the Pudding Thieves ;)

magicpudding_dvd_large.jpg
 
They want security of tenure. Rental vacancy is very tight and they don't want to have to move and finding a new place is almost impossible.

They are also watching the media which is telling them rents will continue to rise. So they want to fix that risk as well.

Raise the rent & lock 'em in :)

yep, look whats available, they know its only getting harder , so they want to feel secure, add your increases , via cpi and lock em in eddie, its a great document to take to a bank too!
 
Top