Renewing Tenants Lease

Renewing Tenants Lease

Member since 2022 · 41 posts · 14 votes

I normally do a lease for the first year of the tenants occupancy.  Thereafter, it's month-to-month.  I'm reconsidering this method for several of my properties.  

If I haven't renewed a lease for a tenant beyond the first year, and they are now there 2+ years, would it be out of the ordinary to issue a new one now?  Why I am thinking about this now?  More so to avoid a tenant leaving in the late Fall/Winter months, when it's more difficult to find a tenant.

Actually, here in the NYC area, a lease has almost become a worthless document.  If a tenant wants to break a lease, the landlord has to prove that a new tenant has been diligently pursued at the same or higher rent before legal action can be taken against the existing tenant.  Also, new legislation is on the table which would make leases automatically renewable for the tenant.  Not sure if I just answered my own question.  However, I'd like to think that a good tenant who signs a lease will abide by it!

Interested in feedback!

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Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
3y

Hey @Rosalie DiPietro - I'm an investor and realtor in NYC, I hear your pain about tenant protections. Since the 2019 Tenant Protection Act was passed, it has been overwhelmingly in favor of one side of the housing equation. 

I recommend always having a lease in place with future and existing tenants. Putting things in writing also sets the tone for them that you're a professional landlord. 

Agreed, even a lease won't cure your headache if you ever run into issues with the tenants.

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  • Real Estate Broker · New York, NY · Member since 2020 · 2k+ posts · 1k+ votes
    3y

    Hey @Rosalie DiPietro - I'm an investor and realtor in NYC, I hear your pain about tenant protections. Since the 2019 Tenant Protection Act was passed, it has been overwhelmingly in favor of one side of the housing equation. 

    I recommend always having a lease in place with future and existing tenants. Putting things in writing also sets the tone for them that you're a professional landlord. 

    Agreed, even a lease won't cure your headache if you ever run into issues with the tenants.

  • Rental Property Investor · Concord, NC · Member since 2016 · 1k+ posts · 3k+ votes
    3y

    Tenants will leave when tenants need to leave. A long-term lease only locks in the owner.  M2M rental agreements all day long. 

  • Nathan GesnerBusiness Member
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    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    3y
    Quote from @Rosalie DiPietro:

    I've heard arguments on both sides. It really comes down to the laws, how well you know them, your personal preferences, weather, and about 17 other factors. ;)

    I am 100% long-term leases, but that's what works well for me and my business in our given market. Other markets, like NYC, may be better suited for month-to-month.

    It may be worth sitting down with an attorney to discuss the pros and cons of each option. Even better would be a very experienced property manager or investor in your area.

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  • Property Manager · DE · Member since 2023 · 248 posts · 133 votes
    3y

    No it wouldn't be unusual to offer a year lease now.  Long term good paying tenants are always the goal with us, saves a ton on prep costs between tenants, vacancies, fees to management company etc.  

    In Delaware if someone is breaking their lease and gives notice to move you have to try to "mitigate damage" to existing tenant by marketing for new tenant right away as well.  This is in your best interest (and theirs) so they generally cooperate with showings making it fairly easy to do assuming the property is in decent shape.

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