The Benefits of a Long Tenancy
As rents continue upwards it is no surprise to see tenants requesting longer and longer tenancies.Traditionally in lettings it has only been corporate tenants who offered landlords any form of long term commitment, ie, longer tenancies with built in rent reviews.
So called corporate lets were once seen as the holy grail for landlords looking to let and forget, not having to worry about finding tenants every 6 months to a year.
However in the current climate we are increasingly finding that private individuals are very keen to lock into multi-year tenancies and many more tenants are now offering the sort of commitment previously only available from the corporates.
As a result, pre-agreed rent increases are often built into the tenancy agreement to ensure that the rent keeps pace with the rising market and also in line with the tenant’s budget.
Alternatively, a prearranged flat rental amount, usually spanning the length of the tenancy, can be implemented. These clauses ultimately ensure greater security and peace of mind and while this trend is more often seen as an advantage to tenants, it is also gaining popularity among landlords who are keen to avoid costly vacant periods where their property could remain un-let.
We're finding that more of our landlords are eager to let their properties for 24 – 36 months. These days, it is very rare that we receive a request for a 6 month lease from a tenant with the minimum usually being 12 months plus.
Benefits to a landlord:
- Reduced ‘void’ periods
- No regular ‘tenant-find’ fees
- Familiarity and a mutual understanding of expectations
- A strengthened relationship between landlord and tenant
- Lowers the risk of getting an undesirable tenant as there will be less turnover
- Reduced wear and tear during ‘move ins’ and ‘move outs’
- A long-term tenant is more likely to look after the property and treat is as they would their own
Benefits to a tenant:
- More secure rent
- Improved credit rating
- A strengthened relationship between tenant and landlord
- More attractive at your initial offer stage without costing the tenant a penny on top of their offer.
- Removal costs saved