In some parts of Australia, a residential lease longer than 6 or 12 months can be hard to come by, but it is possible to secure one.
LJ Hooker’s head of property investment management Amy Sanderson says long-term leases make “perfect sense” for landlords and tenants alike.
Landlords, who are investors, get certainty of return and tenants can be secure knowing they have a home, she says.
Longer leases are often a win-win for landlords and tenants alike, offering more security for both parties.
Sanderson shares tips on how to negotiate a long-term agreement.
“As a tenant, you have to ask: what does an investor want from a tenant?” she says.
“They want someone who will pay the rent on a regular basis, on time and someone who will take care of their property. If you’re doing those things in a property already, you have the perfect recipe for a longer lease.”
“If you’re looking at going into a new property, it’s usual for there to be a 12-month lease to start, just to see that everything’s OK on both sides, then the tenant can ask for a longer lease,” she says.
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For the landlord, the benefits include less wear and tear on the property from tenants frequently moving in and out and financial security, Sanderson adds.
Getting a longer lease comes down to the tenants’ track record, the approach they take and research, she says.
“Having a good rental history and references, showing you look after the properties you live in and evidence you always pay on time – that’s what the landlord and the property manager want to see.
“How you ask definitely matters too. Don’t be too demanding or presumptuous. It has to be done in the right way. Outline why you’re a good tenant and put it in writing.”
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Also, do some homework, Sanderson advises.
“When you negotiate an extended lease, the property manager will often factor rent increases into the deal. Have a look around at the market and see what the market value is, but also understand that for the landlord, it’s a financial investment,” she says.
