In about forty days my lease will end, the real estate agent has asked if I’d like to renew my lease, but I’m thinking of finding someplace cheaper.
As this is the first time I’m renting, I’m not sure how the etiquette goes. Can I tell the agent that I’m looking for some place else? If not a good idea, how long do I have before needing to answer them?
And if it’s ok for me to tell the agent the truth, can I ask them for any listings they currently have?
It may backfire and landlord may just decide not to renew the lease immediately.
Ask them if you can go month to month. Otherwise, I would suggest you sign a new lease ASAP before renewing your current lease.
Never say anything about your intention to leave . Just say you prefer being on a month to month . They cant force you to sign a lease .
They cant force you to sign a lease .
It's a two-way street though - they can also give you a notice-to-vacate easier if you're on a month-to-month.
Sure but that would be much more work for the RE that I assure they have no intention of creating for themselves.
With interest rates rising , the property owner may prefer to have predictable/regular income from the property so they'll probably want someone on a longer term lease.
REA gets no re-signing fee (1 weeks rental) or from advertising if it lapses to month-to-month.
Can I tell the agent that I’m looking for some place else?
Just inform the RE you would like to go on month to month
Make sure you do the calculations on 'cheaper' after you account for moving costs etc
And cleaning costs.
Plus how good/bad the property manager is.
Better the devil you know
I notice you are in Melbourne. Rules in VIC are, and as would be stated in your standard rental agreement, that your lease automatically transitions to Periodic lease (month to month) without you having to do anything at the end of the fixed term lease. No need to even answer their request. It is just an FYI in case you want to sign up for another fixed term - for some renters a fixed term agreement gives more certainty. You can just ignore their request or if you want to show some etiquette say something along the lines of "No thanks, I'll just let it go to period lease per the rental agreement." This probably suits your situation as you would be able to hunt for a cheaper place and be able to give only 28 days notice once you find one.
Forget etiquette. Talk to your states rental agency and get advice. Saying one thing wrong might cost you money. I believe you might need to give notice of leaving, even if your agreement is finishing…. Please check
Of course you can… why not?
Just say I'm thinking about it, I like the place but wouldn't mind somewhere a little cheaper too. Do you have any listings or properties coming up which might fit what I'm looking for?
If he says yes - then see what he's got and see how you go.
If he says no - then ok, let me look around and I'll get back to you as soon as I can. Then go property hunting. If you find somewhere, let him know you'll be vacating at the agreed contract end date, etc. If you don't then go back to him and say I didn't find what I was looking for, I'll just stick around a bit longer.