Discount for longer lease?

3DataModem

Hi, I'm renting a house out soon. The market rate is about 1100 per month for this house... however I am trying to attract long-term tenants if possible with lower rent for a longer lease.

As tenants, what do you think is a fair discount for signing a lease for 2 years instead of one year?

Twixster

Yes I think that would be an attractive offer, I would certainly sign a lease for two years if I was going to get it at a lower price. I think it protects you but it also protects the tennant from the possibility of the rent going up.

who_ru

rents won't be going up anytime soon and job security is a massive issue, who can say that they will definitely be in a job in 2 years time? some members of the public sector maybe and some medical professionals perhaps. 2 years is a long commit but it's good to see some landlords that do not obsess about as high a rent as possible and are prepared to lower expectations to secure the right tenant.

there are too many amatuer landlords out there borne of the credit boom who felt that the price of property & rents only ever goes up.

The_Conductor

It makes sense to charge less for a longer lease- but the one thing I would point out, is make sure you have reasonable break clauses built into the lease- its only fair for both sides (and if you do end up with a tenant from hell- you have a legal way of extracting yourself from any additional rights you infer on the tenant in the lease).

t63m

Some advice if I may! When talking to a tenant try pick someone with a young family who plan or are in the process of building or buying a house within a 1 - 2 year time frame, keep the rent reasonable so they are under no pressure to move out. Remember its a house not a precious jewel so don't fuss about cosmetic damage wear and tear etc., In my experience busy people with young families just get on with it so you don't get the hassle of people with time on their hands to imagine all sorts of wrongs with the property. Also everything breaks down at some stage so sort problems immediately without apportioning blame. Best pay €60 euros to fix a shower than lose a good tenant.
Good Luck!

3DataModem

t63m wrote: »

Some advice if I may! When talking to a tenant try pick someone with a young family who plan or are in the process of building or buying a house within a 1 - 2 year time frame, keep the rent reasonable so they are under no pressure to move out. Remember its a house not a precious jewel so don't fuss about cosmetic damage wear and tear etc., In my experience busy people with young families just get on with it so you don't get the hassle of people with time on their hands to imagine all sorts of wrongs with the property. Also everything breaks down at some stage so sort problems immediately without apportioning blame. Best pay €60 euros to fix a shower than lose a good tenant.
Good Luck!

Been landlording a good while so know the drill - good advice nonetheless.