Auckland Renters Want Longer Leases
February 21, 2017 at 1:14 PM
Plenty in the media this month about property (nothing new there) but one article caught our attention: Housing Crisis: Rent like the Europeans.
The crux of it was that as the number of renters increases (and lifetime renters become more common) so too does the demand for longer leases and security of tenure (like those common in Europe). A one year lease is often what we recommend to owners and tenants (anything shorter can be unsettling to either party and its guaranteed rent). But Auckland tenants are increasingly asking for 2 years or more. Families and established groups are sick of moving, sick of the effort involved in finding a new home in Auckland (and a good one) in a tight timeframe and a demanding market but they either can’t afford (or don’t want to) buy. So why don’t we commonly offer this? Habit? If you are committed to holding the property long term in the Auckland Property Market, why not offer a longer lease to a quality tenant? You can still terminate if they fail to pay their rent (with a tribunal application) and you can write an annual rent increase in to the lease.
So what are the drawbacks? Lack of flexibilty? Unable to sell in a strong Auckland sales market?
But the benefit! Less hassel, security, happier tenants, lower maintenance (typically maintenance requirements change between tenancies, and a change in tenancy can often signal an increase in maintenance costs), no loss rental, the list goes on!
So next time your negotiating your lease, why not ask your tenants what they want? You may find yourself with a long term renter on your hands. Lucky you!