House & Home Long term renting in Sydney

Discussion in 'Living Room' started by Chat_or, 23rd Mar, 2024.

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  1. Chat_or

    Chat_or Active Member

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    22nd May, 2023
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    Location:
    NSW
    Dear braintrust, I was wondering if there are resources to find long term (say 5 to 7 year) rental in Sydney. Do not think REA or domain listings cater to such specific use case of multi year rental needs from the get go.

    Scenario - A family we know needs to be in Sydney for the next 6 to 7 years (work related commitment) but cant afford to buy given the crazy prices. Instead, they intend to buy overseas (south east asia) and relocate there afterwards (much higher bang for buck, retirement lifestyle for someone who is not of an investor mindset). While they are here, they are looking to find some decent human beings, investors who value a good quality tenant over extra dollars. In other words, are happy to rent their place for the long term at a fixed dollar value and occupied by a trouble free family. In return, the family get assurance of a fixed expense for those years and possibly a legal deed to stay there without getting evicted or massive rent rises.

    Can anyone suggest if this is even possible and if so, how might they find these owners?
    I am thinking even if such a resource exists, it will be a small cohort, as most ppl who put up properties on rent in Sydney are either investors or money sharks or both; trying to maximize their investment i.e. values like ethics, fairness, empathy etc are not applicable?

    Would appreciate any thoughts.Could not find a dedicated forum or community around renting, so posting here. Please feel free to redirect.
     
  2. Gmfren

    Gmfren Well-Known Member

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    Most investors are happy for fixed term of 6-12 months. And rent review is a must every 12 months. Longer term lease agreements are quite risky for investors as if they need to sell and if a property has existing lease agreements over 6 months straight away buyers interest is reduced by 50%.
    I think best advice for tenants are to take accountability and ownership and think what they can do for the landlord rather than what landlords will do for them. Be willing to pay higher rents when comes to rent review. And my TIP would be if anyone wants to live long term is to not bother owners with fixing little things and fix things if broken. I have a friend renting for over 6/7 years and she never called landlord to fix anything. Electrical, plumbing even painted the house herself.
    Remember “For those who give, receives” - and you must give first to start the reviving process.
     
  3. MB18

    MB18 Well-Known Member

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    Id suggest just avoiding the typical mum and dad 'investor' type stock and rent from a build to rent organization.

    They are not easy to identify (I think Meriton might be one) but they have thier own on site management, leasing and maintenance etc, and they are not in the buisness off hocking off thier properties on a whim.

    I doubt you will be offered a lease of several years, but you will get some security of tenture and and maintenance issues will actually be sorted out as opposed to having a disinterested PM standing infront of a penny pinching landlord.

    By sheer coincidence I've found myself in one of these build to rent places the last while now and there has not been one frustrating moment or communication issue, any maintenance has been dealt with the same day, and none of the properties have ever been listed for sale.

    That said, for a couple moving is hardly that arduous. A days inconvenience at most really, so the alternative is just not to stress about it and find an area/property you like through the normal channels.
     
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  4. wylie

    wylie Moderator Staff Member

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    Brisbane
    We are decent human beings, and we value a good quality tenant at market rate. We hope for trouble free tenants, but what do you actually mean by "trouble free"?

    We often let long term tenants fall slightly behind market to keep them, rather than lose two weeks or more between tenants, plus leasing fee and advertising for new tenants, but five to seven years is just not on. I may be wrong, but I believe residential leases cannot be longer than two years.

    I find this rather insulting that landlords in Sydney are "either investors or money sharks or both". I'd suggest most are simply wanting decent tenants who pay market rent and look after the asset they've paid a whole lot of money for.

    I also find it insulting that "maximising an investment" means landlords might lack ethics, fairness or empathy. Where are the ethics of the tenant wanting a seven year fixed rate lease? How much empathy would such a tenant feel if they knew the landlord's interest rate (and monthly loan repayments) had tripled but the rent was fixed for seven years?
     
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  5. geoffw

    geoffw Moderator Staff Member

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    Location:
    Newcastle
    In many states, leases can be 98 years
    Do Long Leases Result In Long-Term Tenancies?

    DHA leased properties typically for six years with a three year option.

    But as a tenant, I wouldn't want to fix a longer term if the property didn't turn out well. As a landlord, the same applies. And, as a landlord, I wouldn't want to forgo market rent rises.

    Commercial leases typically have annual cost of living adjustments. This may be something to negotiate. Fixed rent would be very difficult to obtain IMO.

    If your friends are good tenants, there should be no problems with renewing a shorter lease. Rents may rise, but unfortunately, that's the market.
     
    Last edited: 25th Mar, 2024
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