Lease renewal : any advantage(s) of a longer lease?

Hello everyone!

Is there any advantage of a longer lease eg. 2 years instead of 1 year?

From the tenant's point of view, does having a longer lease guarantee the rent won't change?

From the landlord's point of view, I cannot think of any advantage... maybe I don't need to pay the lease renewal fee that often?

Thanks heaps!

 

Evening

Differs a little per state, but here in SA a 2 yr lease has to be registered on title.

Rent can be increased during a 24 month lease (subject to all the normal rent increase rules), but it will need to be specific in the lease as to how many $ its increasing by and what date etc

Benefit for both landlord and tenant is stability. Set and forget in a way.

Disadvantage is that things can change for either party in 2 yrs. Relationship break down or job changes and either might regret locking in.

 

I have three properties on long term leases but they are good tenants and each lease details yearly 4% rental increases. Two have just renegotiated for a further three years and their passing rent was on par with the market.

I personally would not do longer than one year for a new tenant.

 

There's a few things that you need to consider:

• Rent review is to be written into the lease
• May need to be registered on title (refer to DT)
• Lease registration fees may be applicable
• It provides a bit more certainty for both parties
• Depending upon the length of the lease, the residential tenancy act may no longer apply (3 years or longer in some states) - you can shift some obligations to the tenant upon agreement eg rates.