Hi there,
I have a potential tenant for a unit on the Gold Coast that is seeking a 4 year lease!?
My PM has advised me that they are a mother and daughter and has provided no further info as yet.
Any thoughts about a 4 year lease?!
My thoughts are to keep the unit as a long term rental but am reluctant to take on such a long lease at first
“Write the wrongs that are done to you in sand, but write the good things that happen to you on marble.” Arab proverb
Depending on what your background and perspective is, a four year lease could be viewed as too short or way too long. For RIP’s, it is quite long, which is great for you if that’s what you want – which it sounds as if you do.
In terms of particulars, I’d ask the PM to include ;
1. An escalation clause every year of x%, maybe 4 or 5, but at the very minimum CPI…so there is no bickering or arguing. Get it all agreed up front.
2. Include a clause in there that any improvements that wish to make are to remain and are to be owned by you at the end of the lease.
3. Maybe a 2 yr option period tacked on the end, with appropriate market rental review.
4. Get a decent bond…this 4 week residential limit is a joke. Lawfully, if that is all you can ask for, ask for a 2 month rental bank guarantee.
5. Get them to pay in 6 monthly installments in advance.
6. Make sure they sign a direct debit form for the rent.
7. Only have one person as Lessee, don’t accept both mother and daughter on the lease. I’d go with the mother only, otherwise all of this “she said…no…she said” nonsense might start.Make sure the PM does a thorough DD on their application. Are you near a Uni ?? First thought that comes to mind is the daughter has just started a 4 yr Uni course and they want a stable base for that time…
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
WaySolid,
love that proverb.
ESI agree with Dazzling except that I’d be getting both names on the lease (assuming the daughter is of an age to sign a lease). Hold them both responsible for everything or you may find you end up with a halfway house type situation.
We had a situation recently where three people signed the lease. One moved out after about a week, the remaining couple had a barney and one moved out. Other people moved in. We were left with a looney (on the lease) and two other unknowns (not on the lease) and it took us a bit to move them on. In the meantime, the insurance company are chasing all three on the lease for the damage the looney caused, and which was fixed by insurance.
I don’t know why Dazzling suggests only the mother on the lease, but I’d prefer all parties living in my house to be signing the dotted line and committing themselves to the lease. Someone moving in and not on the lease makes it harder to move them on, in my opinion and experience. How can you say they have breached the lease when they are not on it?
Just my thoughts, Wylie.
Hey Wylie,
Our experience has been to choose the eldest and/or most responsible of the occupants and make them sole Lessee. That way we have one point of contact for all official and unofficial communications, and if we find out other people in the property have been playing up, we make the sole Lessee responsible and you achieve a touch of self policing on their part. It’s not perfect, but with the friendly assistance of our tow truck driver contact…most of them play the game.
When the other inhabitants flit in and out, you aren’t burdened with reams of paperwork with fresh leases / bond releases etc.
Our method has not been tested in a court of law, so I’m not saying it’s the only way to go. With the help of our driver keeping things in line, I don’t expect to ever get to the court stage…it has never been worthwhile with the piddling amount of money involved usually with houses and residential tenants.
Essentially we’ve found it boils down to the initial DD you perform on selecting tenants. That outcome would dictate whether having more than one tenant on the lease. As I said earlier, we’ve had problems in the past with “he said / she said / it’s not me / ask them” rubbish. We found it almost…I say almost…disappeared when there is only one person on the lease and they are fully responsible for the conduct and finances in the house. Each to their own I suppose, given different experiences.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
“tow truck driver contact”
Could you please explain this a bit further!? I would like to hear exactly you “lean” on bad tenants…. would be great advice!
Couldn’t possibly expand Tom.
This site only encourages fully lawful ‘by the rule book’ techniques.
I suggest if you have trouble, ask your friendly lawyer type to intercede. 10 weeks and alot of cash and stress later, s/he will still be pumping out a flurry of threatening written letters to people who sometimes aren’t literate and throw her/his musings straight in the bin.
“and if you are not completely sure, seek independent legal professional advice”….I think that’s what I’m supposed to say ??
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
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