Tenant request shorten renew rent

Discussion in 'Property Management' started by melbourne171, 14th May, 2020.

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  1. melbourne171

    melbourne171 Well-Known Member

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    Rent is expiry by July. I want to renew it until Jan 2021 so that I am in a better position to find a new tenant. However, tenant just wants to renew until Nov 2020 as they will move into their newly built house.

    I think about negotiating to renew until December 2020. What are the better options I can negotiate for a better outcome?
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Monthly tenancy is always the alternative.
     
  3. Tom Rivera

    Tom Rivera Property Manager Business Member

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    Realistically this is a question about who's going to wear the potential December vacancy.

    Tenants who are building will almost always base their moving dates on the optimistic times provided by the builder, which regularly blow out by at least a couple of weeks. In this case, the builder will be incentivized to finish before Christmas, so you're likely to have a tenant moving in December.

    You could take a hard line and insist on a lease to the first week of January, but (depending on the state) the tenant could quite easily just push it onto a periodic tenancy and tie you up for months.

    I'm not sure the lease ending in December instead of November helps you much. November isn't such a bad time to find tenants if the house is finished on time, but December is rubbish.
     
  4. melbourne171

    melbourne171 Well-Known Member

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    Thanks a lot for your adivce.