NSW Govt contemplating build to rent

Interesting article about the NSW Govt plans to ease housing affordability.

I'd be interested in this type of approach for the certainty aspect of managing income flows as well as avoiding listing fees etc.

For all the hype in the media about uncertain living arrangements for tenants I've never once had a tenant seek longer than 12 months lease and invariably after the 12 months they go to month-to-month to keep their options open.

 

Most of our tenants re-sign multiple times. We tell them that the first one is for 6 months to see whether look after the property and pay their rent on time. In return, we will grant them quiet enjoyment and fix any maintenance issues promptly.

If they do the right thing for the first 6 months, we will offer them a 12 month lease and they can renew it "for ever".

Longest tenant was 8 years. The only reason they left (we 'kicked' them out) was that they stopped paying rent.

After 8 years, they felt we had received enough. WTF!!!

BTW, we never allow our tenants go month-to-month. Too many hassles.

@Martin73, sounds like you self-manage?

 

Although I don't know my tenants personally - i still seek tenant retention and satisfaction as I would a customer of my service.
It's good business (and cheaper)
Surely most others would do the same

 

@kierank No I don't self manage - you can't legally force tenants in the ACT to go to a fixed tenancy period after the initial fixed term period expires. I've certainly had tenants in multiple properties spend years in the same property but invariably on periodic tenancies.

I've always offered a further 12 or 6 month lease at the end of the fixed period but tenants for whatever reason don't seem keen to lock themselves in.

 

We don't have IPs in ACT but, when this happens to us in QLD, we tell our PMs it's time to find s new tenant .

 

Mirvac announced it about a week ago - linky and reported in the Australian (paywall) - also says that Lend Lease is also considering it.