Talk of longer commercial-like tenancies for residential properties is creating a lot a discussion among property investors. Do Landlords want longer tenancies? Shorter tenancies offer Landlords the opportunity to adjust the level of rent to the market rate or higher on properties that have fallen behind and there is more control with more property inspections and renovations can be carried out between tenancies.
With longer tenancies it may be the tenant who is doing the renovations albeit cosmetic improvements like indoor painting and changing the carpet; not changing the internal layout or adding new rooms. However you’d be hard pushed to find a Landlord who wouldn’t be open to the idea.
Would Landlords need to use property management services for longer term tenancies? If not this may be seen as another carrot for the Landlord. Evidence so far suggests tenants prefer periodic tenancies – that is tenancies with no fixed term and just a couple of weeks notice.
Pedersens property management confirm periodic tenancies are preferred by tenants however tenants do sign up for fixed term too especially in a tighter market with less rental properties on offer.
A paradigm shift would be required by both landlords and tenants in New Zealand for them to accept vastly different terms of a tenancy agreement. Arguably both landlords and tenants have just gotten used to using professional property firms and fixed term tenancies of twelve months.
This blog article was written for PropertyBlogs by Mobilize Mail.