The shortage of rental accommodation in South-East Queensland is unlikely to improve in the short term, signalling a need for change, according to Michael Matusik from Matusik Property Insight.

In the US and some parts of Europe, tenants take out leases that can stretch for years - and sometimes generations.

A similar system would work in Brisbane where soaring prices and plummeting vacancy rates are stretching the rental market, he said.

Currently in Brisbane, the most common lease length is six months - but Mr Matusik believes an increase to at least 12-month minimums is on the horizon.

However, the astute renter will push for even longer and negotiate conditions similar to a commercial lease arrangement, he said.

"This is what happens overseas, in the United States and some parts of Europe," Mr Matusik said.

"Rental increases are stipulated up front and usually (occur) annually, benchmarked against inflation."

Other conditions such as the maximum number of occupants and whether pets are allowed are also fixed at the beginning of the lease.

Longer occupancies allow tenants to feel more at home. In the US in particular, this means many renters carry out renovation projects on a property they don't own.

"Sometimes the capital improvements made by the tenants are valued and the proceeds are shared between the owner and the tenant, either by reducing the rent or when sold."

And the tenant needn't worry if the property is sold - the new owner must honour the existing lease arrangement.

"This gives tenants security of tenure, certainty in terms of outlay and anchors them to a property.

"More in Australia will do this as rental accommodation becomes scarce."

Article source: Extract from Brisbane Times, 12 February 2008

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