Thursday, December 06, 2012

New lease signed

The tenant for one of my properties elected not to renew the lease when the term expired in November. In some ways, this was something of an important first test of how the rental market was holding up in the face of the government's cooling measures (primarily directed at sale and purchase transactions) and the redundancies which have hit the financial sector quite heavily this year. It didn't help that a brand new building in very close proximity had recently come on the market providing a good supply of brand new units with which I had to compete.

In the end, two similar offers came in at about the same time and I was able to sign a new provisional agreement at the same rent as the previous tenant was paying. The vacancy period is five weeks (which is about average) and after five years since the last substantive redecoration, the cosmetic tidy up work was about what I expected - some repainting, minor repairs etc.

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