Two year lease: good/bad idea?

youcancallmeal

Looking for a new place to rent in Dublin at the moment. Viewed a place that was quite overpriced. Offered about 20% less than asking which I considered to be about right. Landlord came back with an offer of about 15% less than asking if I sign a 2 year lease. I think I'm going to go for it. I can definitely see myself living there for at least 2 years if all goes well. Obviously if the place starts falling apart or whatever I can break the lease. Is there anything I should consider before committing to this?

Tefral

Ask for a break clause of 1 months notice after you have lived there for 1 year to be put in, you never know how your circumstances will change down the road.

Rasmus

If it is overpriced, then a 15% reduction would make it market value perhaps. So you would lock into a 2 year lease to allow the rent to be what it should be. Just saying, I'd stick with the offer of 20% reduction, especially if you sign a longer lease.

djimi

youcancallmeal wrote: »

I can definitely see myself living there for at least 2 years if all goes well.

The bolded part is the key. 2 years is a long time to be locked into a lease. Its not that easy to break a fixed term lease, and if your own circumstances change, or if for whatever reason there are reasons that you do not wish to continue living there that does not warrant breaking the lease legally, then you could find yourself in a messy situation.

Personally I would not accept this. The landlord has already shown himself to be a bit of a cowboy/gob****e by asking for so much above the market price, and now he is playing silly buggers by trying to tie unusual conditions to the tenancy just to get the price reduced to what it should be. This is not a good start and you havent even moved in yet. If it were me i would run a mile to be honest.

youcancallmeal

cronin_j wrote: »

Ask for a break clause of 1 months notice after you have lived there for 1 year to be put in, you never know how your circumstances will change down the road.

Would this just not be the same as a 1 year lease? I am renting in a place more than a year now. No contract was signed after the first years contract expired so I presume after that is a part 4 tenancy meaning I just have to give 1 months notice when moving out?

Rasmus wrote: »

If it is overpriced, then a 15% reduction would make it market value perhaps. So you would lock into a 2 year lease to allow the rent to be what it should be. Just saying, I'd stick with the offer of 20% reduction, especially if you sign a longer lease.

The offer 20% less was declined and the counter offer of 15% and 2 year lease was offered.

djimi wrote: »

The bolded part is the key. 2 years is a long time to be locked into a lease. Its not that easy to break a fixed term lease, and if your own circumstances change, or if for whatever reason there are reasons that you do not wish to continue living there that does not warrant breaking the lease legally, then you could find yourself in a messy situation.

Personally I would not accept this. The landlord has already shown himself to be a bit of a cowboy/gob****e by asking for so much above the market price, and now he is playing silly buggers by trying to tie unusual conditions to the tenancy just to get the price reduced to what it should be. This is not a good start and you havent even moved in yet. If it were me i would run a mile to be honest.

I've thought long and hard about it. The only thing I can see that would cause me major issues is if I lost my job within the next 2 years. I really can't see that happening. Walking away from this place because I might lose my job within the next 2 years seems to be over cautious?

With regards the Landlord I can understand why the asking price was so high but I won't get into the details here. Suffice to say so far I've had no signs that the landlord or the management company will be a pain to deal with in future?

murphaph

youcancallmeal wrote: »

I've thought long and hard about it. The only thing I can see that would cause me major issues is if I lost my job within the next 2 years. I really can't see that happening. Walking away from this place because I might lose my job within the next 2 years seems to be over cautious?

Spot on. You could equally sign a 1 year lease and lose your job the day after! Risk is a part of life.

djimi

youcancallmeal wrote: »

I've thought long and hard about it. The only thing I can see that would cause me major issues is if I lost my job within the next 2 years. I really can't see that happening. Walking away from this place because I might lose my job within the next 2 years seems to be over cautious?

How well do you know the area/complex? I moved into my last place in an area that I thought I knew pretty well with the intention of being there a good while, and by the time the 6th month approached (where I had a break clause) I could not get out of the place fast enough.

I just feel that with the Irish rental market it pays to be cautious. There are a lot of rubbish properties out there that were built during the boom times that are awful to live in, and there are a lot of cowboys playing landlord at the moment; neither of these may become apparent until after you move in. Worst case scenario a year is manageable for the most part; two years is a very long time to wait out a lease that you cannot get out of legally. Its up to you, but if it were me there is no way I would sign a two year lease up front for a property and a landlord that I am not familiar with.

Rasmus

It's not so much the risk factor, but the fact that the landlord's counter offer is only really in his favour. If you thought it was worth 20% less initially, why accept 15%?
Unless you really, really like the place, why would you go for it unless countering it with 20% if your sign for 2 yrs?

youcancallmeal

djimi wrote: »

How well do you know the area/complex? I moved into my last place in an area that I thought I knew pretty well with the intention of being there a good while, and by the time the 6th month approached (where I had a break clause) I could not get out of the place fast enough.

Yeah this is another risk factor but one that is hard to spot before you move in. I think I'm safe enough though. Its an end terrace cottage type property in a quiet area. When I was viewing I saw some of the neighbours arriving home from work. I don't want to stereotype but from what I saw I don't think noise/parties would be an issue?

Rasmus wrote: »

It's not so much the risk factor, but the fact that the landlord's counter offer is only really in his favour. If you thought it was worth 20% less initially, why accept 15%?
Unless you really, really like the place, why would you go for it unless countering it with 20% if your sign for 2 yrs?

From my experience looking for a place to rent recently and 2 years ago most estate agents are absolute c*nts! I've been messed around so many times before it's unbelievable. Last place I rented I just offered asking (which was about right in fairness) but I found a lot of estate agents didnt even respond to if you made an offer under asking, even like €50 less. Then you see the property still for rent 2 months later!

Anyway rant aside what I'm trying to say is I've been treated relatively well this time round with good communication and I think that the property is probably worth in the ball park of 15-20% less than they are asking. I'd like to think I'm taking a calculated risk?

I started this thread because I was wondering if there was any aspect of this I hadn't thought about. I think I've covered everything now. I'm going to go for it and just hope all goes well!

RATM

Would advise sticking in a break clause after 3 months. That should give you enough time to find out if the area is okay and that you can't hear the neighbours shagging the other side of the wall.

Worst thing to happen would to sign a 2 year lease and then find out a few days later that the place is plagued with mold, or the area with scumbags.

youcancallmeal

Well it didn't work of for us in the end. Seemed the landlord thought we were going to move in 1st Dec. It only came up late in the negotiations that it was actually the 1st Jan we proposed to move in.

I thought this would of been quite obvious. We need to give our current land lord 1 months notice in order to get our deposit back!? Estate agent said well tenants usually move in within two weeks of agreeing a lease?? Yeah maybe if its your first apartment!

Anyway seems like landlord regretted the deal they made and now wants more money and wants it quicker. Kind of glad it has fallen through as it seems like the combination of the estate agent and landlord would be a nightmare to deal with if there was any problems. Not looking forward to the ongoing search though, estate agents are just scum of the earth!