Fixed Tenancy - As Residential Landlord - Why so good ?

[Hec]

Hi All,
Have never had fixed term tenants. Dont really want any either.
However, can someone please explain the benefits ?

Hec

[SuperDad]

FTTs are very useful where one is providing accommodation in student areas.

[Hec]

Ok.
what if not in student area ?

[Cassandra]

Offers budgetting and projected rental income security for the period of the term. Also, tennacy can be terminated by LL on expiry- with due notice- if the tenants prove to be not such good tenants as you'd wanted. For a tenant a FTT offers them security that they get to reside at the property for the period of the term

[Maccachic]

I like then for the security, one of mine has just requested to go onto periodic at end of FTT which I have agreed to as they are good tennants, but I do prefer the security of FTT. However PM has always put good tennant in so havent had issues yet.

[blurt]

A big advantage is that the tenant pays the costs when they break the FTT which are quite a bit now Veda and Trademe put their price up. I have had 100% occupancy across 6 tenancies for the last financial years, soon to be three years - in no small part due to the outgoing tenants paying rent up until the new ones move in.

[flyernzl]

Hopefully stops that ghastly scenario where the tenant gives notice on the 1st December that they are moving out on the 21st.

[NovInvestor]

Fixed term tenancy also gives you assurance over when the tenants are likely to move out.

If you have multiple properties, with tenants all on periodic, you can never take a long holiday! (more than a week).

By having all my fixed term tenancy end at 1 March, I can start talking to tenants to fix or they move out in January, and once they are all fixed for another year or new tenants move in in March, I can take a holiday in April =)

[Perry]

All sounds good, but while a FTT provides some, ahhh, 'certainty' as in an obligation
for tenants to pay, they can appeal to the TT to break it and they don't always pay
to the end, in the case of a premature departure and no TT order. Then you have to
decide whether or not chasing them is worth the powder and shot.

Somewhere on PT is a thread about a tenant breaking a FTT by TT Order. According
to the story, the TT socialist Klutz said the LL could afford it more than the tenant!
All in the absence of any financial data to support that bizarre ruling.

[Hec]

Thanks for all the replies,

Some good points. FTT great in a commercial sense.
Still don't feel required for residential... Good digs and management begets us good long term tenants as a rule.

Hec