Reasons an owner would want a short lease?

We are selling our unit to buy a house and are looking for a short term lease. What do I need to look out for? I’m looking at one tomorrow and the agent has said the owners want a four month lease. I’m now thinking, why would the owners want a short term lease?

My main concern is that we’ll start renting and a “For Sale” sign will pop up and we’ll have strangers going through the house all the time. Other possibilities?

 

They might want to move back in after 4 months

 

• Are the lessors going to redevelop/refurbish the house?
• Are they considering selling in spring?
• Are they trying to get the current lease of their property to tie up with being able to occupy this one?
• Aliens have landed and they have been given fair warning
• They have their own reasons

 

I was in similar situations 5 months back.
Looked at a few rentals and check if they would consider 6 months. Two rejections just for this. Then I found two properties offering 6 months only. I asked the agent. Two answers:
1. Owner going overseas for 6 months and they will lock up all their furnitures in a room and rent all other rooms. It was a big double story house.
2. Owner was expecting a family member from overseas in 6 months so no further stay.

I wanted to go risk free so ended up taking a 12 months rental.

 

Selling might be one, but there are generally some restrictions around this. In QLD for example, if the owner advertises the property for sale within the the first two months and they didn't advise prior to entering into the agreement, you can vacate on two weeks notice.

Another common one is the owner (or someone they know) wanting to move in but the previous tenancy didn't align from a timing pov. Might just be looking for a few months to fill the gap.

Bit of give and take required if it works for both of you inspections might not be that much of a big deal? You might be out looking at property to buy when they are holding their opens?

- Luke

 

Selling, moving in, developing, family members, renovations.. anything really.

I find most are development or moving in.

 

Thanks everyone. I’ll talk to the agent about it tomorrow. This place wouldn’t be development, it’s not a big block of land, the house takes up 80% of it, and the house is quite new looking, very fresh.

I was thinking six months but it’s difficult, I don’t have a crystal ball and don’t know how quickly my unit will sell, when I’ll find our new place, and how quickly I can get the other parties to settle. Any lease term is going to be a risk. I found a house I love on the weekend, in our budget, and I’d make an offer if we had our finances sorted. But whether I’ll see another I love like that when we are ready, who knows.

 

If I was about to start a fresh lease now I wouldn't want a six month lease expiring right on Christmas as an owner, not a great time to be finding a new tenant if the tenants decide to vacate after six months... I've often advised my PM to offer leases that don't fall right on Christmas even if they are a four or eight month term.

 

If in Nsw, perhaps they are first home buyers and the 12 month requirement to move in ends then? Or it could be a couple getting married in 4 months.

 

The reason doesn’t matter.

But being a set period, your chances of extending the lease are very low. I would only consider it if I knew that four months was the maximum time I wanted the place.
Marg

 

If it were me, I'd be leaning on the sales agent a bit to use their office connections to find a suitable property where the Landlord is happy with or wanting a short term lease/periodic tenancy. Sales agents make a lot of money in commission from property transactions, and if this is the only road block stopping a sale going through you'd be surprised how resourceful some agents can be to get the deal across the line!

 

one thing that hasnt been mentioned is that some landlords request a shorter lease initially to test how good of a tenant you are, so it goes both ways

however given the circumstances provided here, im going to go with the landlord or a relative moving in

 

Some property managers start with a short term lease in order to screen new tenants.

Essentially a probation period. Will then sign longer term lease after it’s confirmed tenants are reliable.

 

He’s happy to help out but it’s a different location. We’re moving closer to work and want to rent there to be closer but also to be a feel for the suburb.

 

Yeah, we do this too especially for what appear to be good people but who have no rental history. However, we make it a 3 month lease.

 

They do want to knock it down. In exactly four months lol. I’ve asked for there to be some flexibility and she’s going to get back to me.

 

No matter what you are told, you will be bound by the written lease.

Make sure any agreed “flexibility” is part of the lease you sign.
Marg

 

Yep, that’s the plan. I spoke about breaking the lease early with reduced penalty depending on how long I’m there, not sure what else I could add? I’m not fussed if I don’t get it, there are plenty of others and maybe I do need to get the selling agent to sort something out for me.