I rented out my first family house on last May 2013 , and now the tenants are asking me if I can extend the lease until December.Its a $ 2500 a month house ,taxes are hight, and I don't want to get stuck in the winter
The house is in a nice location in West Orange
which are the better month to rent out in North Jersey?
the worst ones?
I do development in Montclair, right around the corner. We manage 100+ units in our own buildings. While I find season really effects sales I do not think it effects rentals at all (unless you're near a college). If they're good tenants, keep them as long as you can.
Thank you Kevin!
I strongly disagree. I wouldn't accept those terms if it was place.
If you extend the lease till December and then they decide to move, then you'll have to write off at least a month in rent. You're not going to just have problems finding qualified tenants; you're going to have problems just getting people to come out and look at your place in December.
How big is the house, is it a family neighborhood? Are you attracting families? In my experience it is tough to rent in December , Jan , February in particular to middle class families. People with kids don't switch schools at this time unless they are in transition. I don't know the rental market but I used to live in the area and I think I know the demographic you are probably marketing to. If it is young professionals maybe not an issue but houses to families could be a problem. Yes people always move but you don't have 100 units. I would not do it. If they propose a renewal of less then a year and you do consider it I would not go to January people do not like to move their stuff in the snow either.
Warmer season is definitely better. Is it possible to get them to stay until the end of March?
Or if they can't see if you can get a little bit more rent out of them. Maybe a $100/mo or so.
You may consider doing it, but tell them you will charge more rent for such an arrangement--$200, $300, Or $500 a month more....whatever will make it worth it to you. That way you would collect about an extra months worth of rent during that time period that may make it worth it for you. In my area (Washington, DC), the only times that seem to be bad rental months are mid-November through the New Years. There aren't as many people looking in January, but I was pretty quickly able to find tenants in January last time I had to. Also, people get their tax refunds then and seem to have more cash on hand....
Josh L This is what I thought .December would be very hard to rent it out
Collen F The house is in a family neighborhood ,has 4 bedrooms ,but also attract young professionals (like current tenants) yup January ,lot of snow, Thank you!
James Wise Thank you
Tamara R good idea! and Thank you!
In all of my "family oriented" houses it is MUCH easier AND I can get higher rent during the "may-aug) season because I don't have to lower the rent to stay competitive. I personally would NEVER voluntarily allow a tenant to have their lease come due in the winter.
I just went through this. I have been a landlord of a long time. First time I ever had to try to get new tenants in December. Never again. Sat empty as no one moves during the holidays. I now have new tenants but instead do doing a 1 year lease with them I negotiated it so it was odd term lease at 1 year 3 month lease so it's up for renewal in the springtime.
You must be a BiggerPockets member to post on the forums
Join the world's largest, most open Real Estate Investing Community online, 100% free forever!