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tenancy terms: what is best 6 or 12 months?

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house_2Sometimes the answer can be both or neither depending on your circumstances.

There are no laws stating that you must enter into a 6 or 12 month tenancy agreement term.

If the property is a long-term investment then the longer the tenancy term the better, as it provides you with security of a tenant, reduces wear and tear from multiple tenancy turnovers and will save you money in advertising, reletting costs and lost rent if the property remains vacant. However, if you are considering selling the property or are unsure of your future plans then a short-term tenancy of 6 months may be more suitable. This also gives the opportunity to ensure that the tenant is suitable for your property.

when can neither apply?

During the year the vacancy rate can greatly fluctuate. There are peak times of the year when properties are in demand and other times where it can be more difficult to rent properties. By understanding the local market we can complement the tenancy term to coincide with high demand times of the year.

For example: A tenant is looking to move into the property on 15 May requesting a 6-month tenancy that would expire on 15 November, which is not the best time of the year for a property to become vacant.  We would therefore request a 7-month tenancy.

If your property has a pool we also need to be mindful that the tenancy term does not expire during the winter months, as this may make it more difficult to rent the property. Specific aspects of your property also need to be considered ie if your property has minimal air-conditioning, it is preferable that the lease does not expire in the warmer months. Providing good heating and cooling options is helpful in securing a lease for your property.