It is probably timely to remind everyone, once again, about our policy and procedure for the renewal of leases.
When a lease is approaching renewal, we write to the tenant some 10 weeks prior to expiry, setting out the terms of the new lease. This long amount of lead-time gives the tenant plenty of opportunity to look around for an alternative if he doesn’t like the rent increase. It also encourages him to give plenty of notice of his intention to leave if he has no intention of renewing the lease for other reasons.
Furthermore, it helps us adhere to the latest provisions of the laws that govern residential rentals in Queensland, for your benefit.
Because we manage your unit as an investment, the secret of a good investment is to have 100% occupancy with good tenants at good rents long term, we offer your good tenants an option to renew their lease at the market rate prevailing at the time of renewal. Our aim is to have as few rent-free days as possible. Generally both you and your bank manager appreciate this approach! The added benefit for the owner is that a lease renewal attracts less fees than a new lease, so anything that encourages a good tenant to stay on saves you money.
There is of course, a “safety-valve” clause built into the option document that enables us to dishonour the option if the tenant has fallen down on his obligations during the lease period.
An excellent long term tenant may also be offered a slightly lower rate than that levied on a new unproven tenant. This is simply prudent management practice.
We have an obligation under the Code of Conduct to keep you informed about your investment, so if you do not wish us to offer options to your tenants, please let us know immediately. Otherwise we will continue to manage your property in the manner indicated above.