Property Investor News | Tenancy Length

LENGTH OF TENANCY: WHAT USUALLY WORKS OUT BEST?

It is most common for a lease agreement term to be fixed for either six months or 12 months, and we are often asked by our owners, “Which length is best?”

The approach that we take will often vary depending on your circumstances. For example, if your property is a long term investment for you, then we will look for a long term tenant with a 12 month lease. This reduces ‘wear and tear’ with tenants moving in and out of the property as well as saving re-letting costs such as advertising. If you are thinking about selling, it may be that a shorter term is more suitable.

If, in either case, the lease was set to expire at an awkward date when it might be more challenging to re-let (for example, December), we may look for an extra couple of months in the initial term, say seven or eight.

The next question is what happens when a lease expires, should we renew the lease into another fixed term agreement, or have it continue as a periodic agreement which goes from month to month? Again, it depends on your circumstances – do you want the security and peace of mind knowing you have a fixed income for a fixed period, perhaps factoring in a small rent increase? Again, this may be advantageous if you are thinking of your property as a long term investment.

Otherwise it may be that leaving a good long term tenant that looks after your property well on a periodic arrangement is the best for all parties.

SOME OF THE WEIRDEST TENANT MAINTENANCE REQUESTS

Landlords and property managers come across some pretty strange maintenance requests! Here are a few of our favourites, gleaned from a popular property investment forum, where the tenant:

• destroyed a light socket by trying to put a bayonet bulb into a screw socket;
• got a plumber to show them how to use the exhaust fan, then expected the landlord to pay the $90 bill;
• complained that their deck got wet when it rained;
• went through three heavy-duty toilet seats in just over a year;
• reported that it was too dark when the light switch was in the “OFF” position;
• complained that the water feature wasn’t working – when there was no water feature;
• wanted something done about the ants in the yard; and
• broke a toilet in half by jumping from a window onto the toilet after locking herself out of the house.

If you have any questions, or need clarification on any of the above, please contact Anna Marten, our Senior Investment & Property Manager, on 9651 1666 or anna@guardianrealty.com.au

Important note: Clients should not rely solely on the content of this newsletter. All endeavors are made to ensure the content is current and accurate however, we make no representations or warranties as to the accuracy, reliability, completeness, or currency of the content. Readers should seek their own independent professional advice before making decisions.

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