We have found that not all property investors see the advantage of renewing their tenant’s lease agreement. As your property manager, we understand that ensuring a continued fixed term tenancy is paramount in order for you to budget for regular and ongoing rental income.
Not only this, but a tenant on a fixed term lease on an ongoing basis means more rental income is derived as the property will not become vacant or suffer additional wear and tear through the tenant vacating and a new tenant moving in.
As an agency, we understand this and will, with your consent, approach your tenant prior to the lease expiring in order for them to renew the lease. Current legislation dictates that the opinion is with the tenant if they would like to sign a new lease.
If your tenant is out of a fixed term agreement, your property manager will be in contact with them to negotiate for a new lease to be signed. Your property manager will also be in contact with you to discuss your needs and to suggest a lease term to tailor it to market conditions.
Should you wish to enter a new lease with your current tenant, we will use all avenues to ensure that the new lease is signed. We will inform your tenant that by entering a fixed term lease we can guarantee them security of tenure for that term, where if they remain on a continuing tenancy, we cannot give that guarantee.
In some instances, the offer of a moderate rent increase against a higher one is another inducement that can be made to ensure that your tenant signs a lease and you have peace of mind.