Tuesday, October 29, 2013

Lease renewed

I have just renewed the lease on one of my properties. As this was the highest rental stream in the portfolio it was a relief to sign the tenant up for another two years (with break clause) at a rent that was only (approximately) two percent below the old rent. While the new rent is (probably) a little below the current market, I am still much better off having the unbroken cash flow from a lower rent than getting a higher rent after a short vacancy and incurring all the usual costs involved in renting to a new tenant.

While it is inevitable that there will be vacancies from time to time, starting my retirement with full occupancy on the Hong Kong properties (and having one mortgage free) is a nice.

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