Just signed a 7 year tenancy

Discussion in 'Property Management' started by Casteller, 12th Jan, 2023.

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  1. Casteller

    Casteller Well-Known Member

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    I'm the tenant, 7 year lease at a fixed rent, with an option to extend a further 3 years. I'm only locked into it for 2 years, but the owner the full 7.

    But I'm in Barcelona. Have been told that's longer than normal, which is 3-5 years, so they must think I'm a good tenant (been here 9 years).

    My Australian tenancies on properties I've owned there have always been 1 year, which seems very short compared to Europe. I see some people even have 6 months. Any push to have longer tenancy agreements in Australia? Anyone offered good tenants longer contracts? Very insecure for tenants with such short tenancies.
     
  2. skater

    skater Well-Known Member

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    Nope! Most of mine are 12 month contracts, a couple 6 months.
     
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  3. Scott No Mates

    Scott No Mates Well-Known Member

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    I've done a few 3 year leases for community housing providers, these have been good for consistency but there's a general resistance to giving a tenant a long term lease.

    It doesn't have any additional advantages for the managing agent as they don't get the six/12 monthly renewal fees.

    As for the commercial tenants, I've got a few at 12+ including one over 20 years. I have no issues with long leases.
     
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    My relos In Germany do 5 to 10 year leases.

    ta
    rolf
     
  5. Travelbug

    Travelbug Well-Known Member

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    I wouldn't want tenancies for that long. You have a plan to hold forever but circumstances change. I sold one last year as it trippled in price and it made sense.
    I can understand that tenants want security but what are the breaklease laws? In some states it's very easy and cheap to break lease so what's the advantage for the landlord?

    I have one tenant that signed a 12 month lease 13 years ago. Still there. The agent sent a renewal in 2011 but he didn't sign it. He's a great tenant.
     
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  6. skater

    skater Well-Known Member

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    Yep, I've got a tenant in my ex PPOR. Not the latest one, the prevous one to that, so maybe 15 years now.
     
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  7. MTR

    MTR Well-Known Member

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    Dont you love it when you have a brilliant tenant for 7 years on 1 year leases;)
     
  8. thatbum

    thatbum Well-Known Member

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    Yes that is one of the goals of the various tenancy law reform processes going on in various states at the moment.

    Unfortunately, there hasn't been much meaningful input from landlords about how this could come about, so its unclear how exactly it might be implemented.

    It was some of the work I used to do in the law reform space.
     
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  9. The Y-man

    The Y-man Moderator Staff Member

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    Landlords need to provide kitchens in Australia ....:p

    The Y-man
     
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  10. wylie

    wylie Moderator Staff Member

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    Is there any built in rent increases with a seven year lease?

    It would be terrible to have signed a seven year lease last year at $750 per week and know that we are now getting $805 but are locked into $750 per week for the next six years. :eek:
     
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  11. Casteller

    Casteller Well-Known Member

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    No my rent is fixed at 950 euro per month for 7 years, can't increase. I believe the cap between leases is 2% increase per year, which roughly corresponds to the two rent increases I had in years 4 and 8 (around 10% increase every 4 years).

    In Switzerland it was even better, I only had 1 rent increase of 4.5% in 9 1/2 years, and that had to be justified (heating oil price).
     
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