As rents continue to increase it’s not surprising to find out tenants requesting longer and longer tenancies.Traditionally in lettings it’s just been corporate tenants which supplied landlords any type of long term commitment, ie, longer tenancies with integrated rent reviews.
So named business lets were previously viewed as the holy grail for landlords planning to allow and forget, not being forced to concern yourself with finding tenants every single six weeks to a year.
However in the present climate we’re frequently finding that private individuals can be keen to secure into multi year tenancies and several more tenants are currently offering the kind of dedication previously only offered from the corporates.
As an outcome, pre agreed rent increases are usually included in the tenancy agreement to make sure that the rent helps to keep pace with the increasing market place and also consistent with the tenant’s budget.
Conversely, a prearranged flat rental amount, typically spanning the length of the tenancy, is applied. These clauses ultimately ensure better peace and security of head and while this pattern is often viewed as a benefit to tenants, it’s also becoming more popular among landlords that are keen to stay away from expensive vacant periods in which the home of theirs may remain un let.
We are discovering that really our landlords are wanting to allow the properties of theirs for twenty four – thirty six months. Nowadays, it’s quite unusual we get a request for a six month lease originating from a tenant together with the minimum usually being twelve months plus.
Advantages to a landlord:
Reduced’ void’ periods
No regular’ tenant-find’ fees
Familiarity and a mutual understanding of expectations
A strengthened relationship between tenant and landlord
Reduces the danger of obtaining an unwanted tenant as there is going to be much less turnover
Reduced damage during’ move ins’ and’ move outs’
A long-term tenant is much more apt to look after the home and treat is as they’d their own
Advantages to a tenant:
More sound rent
Improved credit rating
A strengthened relationship between landlord and also tenant A lot better at your original offer stage without costing the tenant a penny in addition to the offer of theirs.
Removal costs saved