As for lease periods its all dependant of the area.
If in a 1 horse town 2-3 years is good. If for example in sydney or melb i would want short as possible.
I never sign any of my tenants now days on more then a 3 month lease when they move in, one might ask why? Because I have control over rents. In the old market there was too many properties not enough people therefore long leases looked attractive, but if your locked in you cant raise rents at your call. Tenant will stay if they want security. If I look back I have had rents go up on some of my properties by $100+pw over a period of 12 months. Some properties I have had tenants cause ethical issues with me (lying over stuff they have broken obviously etc..) and I have terminated their leases just to have 12 people come through the next day and rent for $50-80pw more. In these cases, who is doing who a favour?
Be careful when locking yourself in when the odds are against you.
Whats the chance of market goingbackwards? well we will need to see massive levels of construction, and a decline in immigration, which neither I see happening anytime soon. Due to economy growth and due to constrction finance is at depressing levels, therefore great times ahead on rents, expecially that renting will become a cheaper option as interest rates increase.
This is my opinion as you have asked for views but DYOR, and goodluck.
Nath.
