I am back to having 100% occupancy on the property portfolio and have successfully rolled over all of the leases which fell due (or, in one case, found a new tenant) - finally. The last two tenants took up a considerable amount of time in either (i) haggling over the rent or (ii) haggling over the terms of the lease, but finally signed up for renewed leases this week.
Given the potential pain that could have arisen with multiple vacancies due to the unfortunate bunching of several leases termination or opt out dates, it was a relief to reach a position where:
1. the gross rent roll has fallen by less than 6%;
2. I only had one vacancy and that was for only two weeks;
3. I had minimal involvement of an agent (which saved commission);
4. I still have a positive cash flow on the portfolio (even with all mortgages on P+I terms);
5. absent a default, the earliest any tenant can terminate is December this year.
It is comforting to know that I will not have to draw on my cash reserves to top up any mortgage payments this year.
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