Would you offer a 6mos lease?

[korygrandy]

I have some tenants who apparently want to move when the snow is flying. Business sense tells me not to lease less than a year. The tenants have paid on time the past year and are counting there blessings on a short sale offer.

Also seems to be easier to rent when school is out but then again I have always been fortunate to have summer leases. I presented 2other lease options that they declined and prefer a 6month. They haven't been very responsive either as I tried to discuss lease reneawal 2 months ago and they have avoided me until 1 week before the lease expires.

Should I find a new tenant and raise the rent at the same time?

 

[foodfisher]

Re: Would you offer a 6mos lease?

New tenant? Yes, they're bucking. Raise the rent? Depends on market.

 

[rlk]

Re: Would you offer a 6mos lease?

We all do things differently, but when I was in the rental business, once a lease expired, I let the renters go on a month to month basis. In other words, a new contract/lease was not required. This never caused me a problem.

Regarding raising the rent, a lot of business models call for raising the rent each year, but usually I didn't do that. As long as I had a tenant who paid on time and appeared to take care of the house, I kept the rent the same. Most tenants moved within a couple of years, and that is when I raised the rent.

Good luck with whatever you decide.

Bob

 

[Jlawsen]

Re: Would you offer a 6mos lease?

We all do things differently, but when I was in the rental business, once a lease expired, I let the renters go on a month to month basis. In other words, a new contract/lease was not required. This never caused me a problem.

Regarding raising the rent, a lot of business models call for raising the rent each year, but usually I didn't do that. As long as I had a tenant who paid on time and appeared to take care of the house, I kept the rent the same. Most tenants moved within a couple of years, and that is when I raised the rent.


Good luck with whatever you decide.

Bob

Good advice if you own the property. If you don't own the property, you need to read the loan docs carefully. They may stipulate that a lease is required from all tenants. This may be how the bank rated your ability to pay and may not allow month to month tenants. If you violate the loan agreement, the bank could call in the debt. It doesn't sound like you have that situation but I just thought I should mention it.

 

[Lyle29464]

Re: Would you offer a 6mos lease?

If they are paying and no trouble. Keep them.

 

[roscoe]

Re: Would you offer a 6mos lease?

Years ago we have a few rentals before we relocated.

I would avoid any lease ending between Nov 24th and January 31st.

It's just a really bad time, for you, for them, for repairs, for everything.

If they aren't going to be sensible, then let them go month to month till September 1st and give them notice in a few weeks. Start advertising by July 14th. The worst that can happen is they move out and the place is empty for the month of August. Sure beats having it empty from Mid December through February?? or March??, when you will be paying the heating bill.

If possible, avoid vacancies from October 1 through March 1 as well.

If you take in a new tenant during the late fall/winter months, don't offer a 12 month lease, or you will be setting yourself up for a repeat performance next year. Either go month to month, or 6 month, or 15 month lease.

When we bought one 4 plex in July, we thought the existing tenants were good ones, but wanted to make sure, and bring all the leases into alignment. We explained to the tenants what we were trying to accomplish. We let the leases expire and go month to month.

Then in March, the tenants could either sign for a 3 month lease, a 12 month, or a 15 month lease; OR they could go month to month with the advance notice that they would have to be out by June 22nd.
They all opted for the 12 or 15 month lease.

 

[roscoe]

Re: Would you offer a 6mos lease?

If they are paying and no trouble. Keep them.

Easy to say when you are in a warm climate.
Its all a little different up here in snow country and sub zero temps.

 

[Kiwi Phil]

Re: Would you offer a 6mos lease?

If they are good tennants (treat the property well, pay on time, no trouble etc) then I would do the 6 months for them.

I don't follow the business model of increasing every year, although my rental agent wants too. I am $10 week less than most of the other 60 townhouses in the complex, but so far, run at 100% occupancy, and they don't.
Just have to judge your market I guess.

Cheers
Phillip

 

[kenmyfam]

Re: Would you offer a 6mos lease?

From our landlord days and the experiences we had. If you have a good tenant then keep them as long as you can. For every good one there are several bad ones.
Just my thoughts though.

 

[BuzzStPoint]

Re: Would you offer a 6mos lease?

Depends on your area.

In St Point, It's a college town. So anything on the north side of town is real easy to get 6-8 month leases. Month to Month is also another possibility.

 

[korygrandy]

Re: Would you offer a 6mos lease?

From our landlord days and the experiences we had. If you have a good tenant then keep them as long as you can. For every good one there are several bad ones.
Just my thoughts though.

This is kind of my reasoning as well, although the ratio might be 3 to 1, good to bad.

The only reason I am questioning my business sense is the tenants have been good, not great and I ding them for lack of communication. Thanks guys, I think I've made my decision to lease for 1 year and avoid getting this place ready to rent in the middle of winter. I don't know how many folks are actually moving with sub zero temps but I know I would avoid it if I had enough sense to plan that far ahead.

If I were in a college town, I would probably consider the 6month, but this place is in the burbs.

 

[salty87]

Re: Would you offer a 6mos lease?

i think you're making the right decision. good history or not, probably not a good business decision to accomodate them and back yourself into a bind. in the very least, charge them higher rent for the 6 months in anticipation of probable vacancy period. their problem doesn't need to become yours. waiting until 1 week is left isn't a sign of goodwill from them.

 

[kenmyfam]

Re: Would you offer a 6mos lease?

Good luck with your decision and keep us posted how you make out.

 

[korygrandy]

Re: Would you offer a 6mos lease?

Thanks guys. The lease expires July 1st but I am sending the certified 30day vacate notice today. They verbally expressed in a prior phone conversation they would need 30days to move out, and then came back and said that was not enough time. We shall see if I get into a squatter situation. :facepalm:

I think putting pressure by showing the rental, of course with proper 24 hour notice each time, say 3x a week will show them MY sense of urgency.

 

[greenbush future]

Re: Would you offer a 6mos lease?

We all do things differently, but when I was in the rental business, once a lease expired, I let the renters go on a month to month basis. In other words, a new contract/lease was not required. This never caused me a problem.

Regarding raising the rent, a lot of business models call for raising the rent each year, but usually I didn't do that. As long as I had a tenant who paid on time and appeared to take care of the house, I kept the rent the same. Most tenants moved within a couple of years, and that is when I raised the rent.

Good luck with whatever you decide.

Bob

This is how I do it too, one tenant just runs month to month, after his first 12 month lease expired. That was 2 years ago and I just leave well enough alone. I would guess you could actually put in the original lease that the lease renews unless other arrangements happen, or like mine, it converts to month to month. It will cost me $2K to prep the house for a new tenant, and I figure I would rather not do that, and roll the dice on a different renter. My guy has a history of being a good renter, why rock the boat? I could get more if I rented to someone else, but they could end up being a headache renter too. I actually like the month to month thing, makes eviction so much easier.

 

[roscoe]

Re: Would you offer a 6mos lease?

His tenant has already expressed intent to move out at the end of the year (winter, Christmas, New Years).