As a host, can I pull out of a mid-term rental before the lease is signed??

[C.N. S.]

I am a newbie investor who just launched my very first investment property as an STR late last fall. I spent so much money trying to bring that place together that I am literally tens of thousands of dollars in high interest credit card debt. My market is seasonal and I was begging for enough revenue just to cover my mortgage so I wouldn't have to pay my own rent AND a mortgage. Now that the weather is getting warmer, my occupancy has improved and I am FINALLY starting to generate decent revenue that can even help pay some of my business debt.

Enter...medium-term rentals. I listed my property on Furnished Finder last year but didn't get any bites. About two weeks ago, someone finally reached out and expressed interest. I think I was so excited about finally securing a medium-term rental that I moved forward with drafting and sending a lease for them to review and sign. As soon as I did that, however, it dawned on me that I will be taking my property off the market during the highest earning months for my region. My expected revenue next month from confirmed STR bookings is literally DOUBLE what I will earn from my medium-term rent. If I am 50-75% occupied for the rest of the summer, I still make almost-to-more than double the medium-term rent. To make things even more complicated, I could possibly have roof issues, which means more $$ spent that I won't earn. The fact is, I need the extra income STR rentals bring in and don't want to leave any money on the table. Who's to say that occupancy next year will be the same or even increase?

The lease has not yet been signed by either party. Is it at all possible for me to "retract" the listing and inform the guest that the space will not be available during the summer as expected? What should I tell them? Clearly I don't want to give any impression that it's due to discrimination of any kind.

Thank you in advance for any advice!

[Randall Alan]

@C.N. S.

The SIGNED lease is your commitment to your renter.  If it is not signed, it is not a binding commitment... it was an offer.  You can certainly withdraw your offer - even if they signed it and you did not.

It really isn't necessary to provide your potential mid-term tenant an explanation for your actions.  But if you feel compelled to, you could literally just say something like, "We decided to go a different direction on the rental and it is no longer available.  Thank you for considering us and we wish you well."

It's your property - you get to decide what you do with it.  Once you have signed a contract / lease you should honor it.  Until then - it's your prerogative on how you use it.

All the best!

Randy