Does it really matter if my tenant will not sign a new lease agreement when I want them to? Does it really matter if my property becomes vacant when I don’t want it to be vacant? Does it really matter if my tenant does sign a new lease and then has to leave?
If only we could have guarantees that as investors we would never suffer loss.
What a perfect world that would be.
Does it really matter if tenants will not sign a new lease agreement and they just want to remain on a periodic tenancy? Is this a problem?
Owners get very concerned when their tenants will not commit to another fixed term. But why? The rent is still coming in and the property is still being maintained. Some owners have requested we issue tenants a Notice of Termination at the end of their fixed term just because they will not sign for another term. Is this reasonable? Is this fair?
Let’s consider the costs here. Not only will owners have advertising costs and letting fees to pay but what about the loss of rent incurred in trying to secure another good tenant. A great tenant could be lost along with hundreds of dollars all because owners place pressure on tenants to sign a new lease.
Many tenants sign a lease for a six month period and are still there two years later. The lease is still a valid and legal document. The only thing that has expired is the fixed term. Understand that circumstances in tenant’s lives are constantly changing and placing added pressure on them to sign for another term can cause conflict and stress.
Owners, we feel should sometimes see things from a tenant’s perspective. Tenants, like owners, lose jobs, change jobs, travel, get sick, suffer relationship breakdowns, have babies, build houses – do all the things that seriously impact on them making important decisions. Having to be told that they must sign another 12 month lease agreement or move out when their existing lease is up is nonsense. Nowhere in the legislation does it state that a tenant must sign a new lease agreement when the existing lease expires. Remember, courtesy, respect, fairness, negotiation and common sense are keys to keeping long term happy tenants. It’s also the key to stability of income.