Had an interesting experience during the week. We have new tenants moving into a property that we have just renovated. I had just read a book on negotiation which said “..the first person to mention a price always loses…” so I thought I would give it a test. When the tenant asked what was the rent I said “I haven’t decided yet. Why dont you go away and think about what you would be happy to pay for the place if I gave you a 2 year lease”. His offer (2 days later) was $230 per week which was $30 more than I was going to ask!!!! Anybody else ever tried this?
Do people think that in this environment of rising interest rates and a more cometitive rental market, that 1 year leases are more and more common? I remember when 6-month leases were de rigeur, but I am certainly seeking one year leases these days- at least then, I can budget/plan for 12 months.
Are other people pushing for 1-year leases too? Do you prefer 1 or 2 year leases? Would 2 year leases bother you because you cannot do a rental review after 1 year?
Its normal practice in the areas I invest for 12 month leases.
Six months is too soon, before you know it, its expired.
Two years is a long time for a tenant to commit so its rare you get someone who is prepared to sign for that period. I once had someone prepared to sign for 2-3 yrs but decided not too. I just thought it was too long a period.
As i pay a weeks rent for a lease signing, I think you want value for money – so 12 months is what I expect.
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