29 / 52
P A G E 2 7
R E I Q J O U R N A L
| J U N E 2 0 1 6
T R A I N I N G
Property features
Property features can also be taken
into account. A property with a pool,
and/or air-conditioning, has more
obvious appeal in the summer months.
This may mean the property can be
rented more quickly at those times,
and for a premium rent compared to
when it’s offered for rent in the winter
months. The lessor might prefer all
tenancies to be established to expire in
the hotter months.
Days of the week
There may be a preference to avoid
tenancy end dates that happen to
fall on particular days of the week.
An obvious example would be
selecting an end date that requires
keys to be returned on a Sunday
when the agency is not open on a
Sunday. Of course, even if keys are
returned late on a Friday afternoon,
in some agencies that can mean the
vacate inspection is not completed
until the Monday, or that cleaners
are not available - which means
additional days of vacancy, inaction,
and nil rental income for the lessor.
If there is a preference to have keys
returned by vacating tenants earlier
in the week rather than on a Friday,
then tenancy end dates that fall on
Monday or Tuesday could perhaps
be selected to suit. This may facilitate
getting the property inspected,
cleaned and available for reletting in
a timely manner, with no weekends
interrupting that process.
Good tenants
When entering into new agreements
with existing tenants who have
already proven to be wonderful
tenants – the lessor might want to
consider a longer tenancy term to hold
onto the tenants for longer, which will
impact on the chosen end date.
The market
The rent can be reviewed and
increased in line with the market at
the end of any tenancy agreement.
However rent could only be increased
during a fixed-term tenancy if the
increase is clearly stated in the
special terms of the Form 18a from
the very beginning (and only if it is
happening at least six months after
the tenancy commenced).
The special term must state when the
increase is happening and must state
the amount of the increase or how it
is to be worked out. The special term
cannot leave the door open for the
rent to simply be ‘reviewed’ during
the tenancy, and it cannot require
the tenant to pre-agree to a future
increase that is to be ‘determined
at the time’. Therefore, if the lessor
does want the opportunity to review
the market rent in six months time,
then they would definitely have a
preference for only entering into a
six month tenancy. This might be the
case in a rising rental market.
Conversely, where rents are
dropping, the lessor might prefer a
longer tenancy agreement to lock
in a current rent. When negotiating
tenancy terms, discuss the current
market with the lessor and seek their
instructions.
Act in the client’s best interests!
Agents should aim to inform lessors
about relevant considerations they
might wish to take into account in
their circumstances. Although some
lessors might not be particularly
influenced by some or any of the
above considerations, others may
be. Always follow the client’s lawful
instructions.
If an agency recogn i ses t hat cer tai n
mon t hs of t he year tend t o mean h igh
vacanc i es and fewer appl i can t s i n t he i r
area, t hen les sor s migh t prefer tenanc i es
t o be es tab l i shed t o avo i d hav i ng
agreemen t s exp i re around t hose t imes.