This post is written by Karl Deeter in a personal capacity.
I help to manage about 20 tenancies in different buildings, and lately we have been operating a new agenda which is very simple.
We offer leases of between 2 and 5 years. A two year lease comes with no rent review, a five year lease comes with a review in year 3 with a contractual clause that the rent cannot go up or down by more than 10%.
According to the commentary on what tenants want you’d think that people would be jumping at the bit for such terms and conditions? Think again, it has almost universally fallen on its face.
While there are people affected by rising rents, what they don’t seem to want is the time commitment that goes with a lease of longer than one year. Why is this? What is the trade-off?
We do ask why it doesn’t suit and get different answers, some people want to buy a house or don’t know if the will stay in their current job, others just ‘prefer’ one …