lower rent with 2 year lease
Hello I have a rental in a C to C- area in town and I am finding that the tenants are consistently late on rent. I think at the end of the day they just don't make enough money with rent making up about 40% of their monthly budget. I have had some great conversations with these folks and have talked about making weekly payments in addition to trying to incetivise them by lowering the rent with 6 months of on time payments. They have about 6 months left on their lease and I dont want to lose them but at the same time I want to lose the hassle factor of communicating with them weekly about rent. Having said all that I would like to discuss the tentants signing a 2 year lease at a $50 monthly discounted rental rate. It doesnt sound like a lot but it will be a savings of $600 per year. Any thoughts on this idea? My thoughts are I will lose much more with a month of vacancy.
Thanks for any suggestions