Long term rental question.

[Darren Redfearn]

Just wanted y’all’s thoughts on a lease being 3 years for a single family home. I have a tenant that has requested this. What do you guys think as far as pros and cons? In the past I have never done a lease over 12 months. 

[Nathan Gesner]

Quote from @Darren Redfearn:

Just wanted y’all’s thoughts on a lease being 3 years for a single family home. I have a tenant that has requested this. What do you guys think as far as pros and cons? In the past I have never done a lease over 12 months. 

Red flag warning!

Tenants often request long leases because:

(a) they want you to pick them over other candidates, possibly over-looking some negative factors in their history

(b) they want you to give them special rates or concessions

(c) they want to lock in a low rate and avoid any increases in the future

I used to allow longer leases and I discovered about 80% of them would leave before the lease was over. Renters can't possibly know what their future holds or where they'll be after a year.

You need to maintain control. A one-year lease keeps you on schedule with inspections, rent increases, changes to the lease terms to fit law changes, etc.