Tenancy renewals and end of tenancy

Your property manager will contact you well before your tenancy lapses to discuss and plan your next move.

Whether you choose to renew with your current tenant, seek vacant possession yourself, or even list your property for sale, the decision is entirely yours.

Do I have to give my tenant a reason why I’m not renewing the lease?

Yes. If you plan to either sell or do major renovation, the tenant needs to be notified, with 60 days’ notice, of the reason under the new laws as of February 2021.

If my tenant wants to leave, how much notice should they give?

On a fixed-term contract, the tenant needs to liaise with the property manager and landlord to confirm a date.

On a periodic contract, 28 days’ notice is required.

Why does my property manager want me to decide about the tenancy so long before it expires?

We like to start tenancy negotiations with you three months prior to the tenancy expiry date. This gives you an opportunity to consider your options after we have reviewed the tenancy and market conditions for any possible rent increase.

Once we receive your instructions, we communicate with your tenant to ascertain their plans and commence the negotiation process.

It is important to enter into another lease agreement as soon as possible to ensure your rights are protected. Legislation explicitly highlights that failure by the landlord and tenant to enter into another fixed term agreement (or to advise intentions to vacate) 28 days prior to the lease end date, will enforce a periodic tenancy.

Why does my property manager provide a recommendation regarding the increase in rent amount?

We consider current market conditions, immediate competition, stock levels, tenant demand, redevelopment, and social/economic factors, as well as specific property features (such as home improvement or additions) from the preceding year.

Tenants have also become more savvy seeking extra features for their dollar, especially when the market is in an overflow of supply. This directly affects your potential rent increases.

A combination of these factors can suggest it may be more financially viable to maintain an existing tenant, rather than have them leave, which could trigger a prolonged vacancy period and potentially lower rent.

And what happens when the tenancy expires?

Najib Property Management keeps in touch with you and your tenant regularly throughout the end of tenancy process. This means your tenant will have a full understanding of our expectations on presentation and care for the final inspection well before they start packing boxes.

Our thorough exit procedures compare the In-going Inspection Report with the final inspection report, while considering reasonable wear and tear over the course of the tenancy.