I posted my rental property on craigslist for several weeks now without a good potential tenant. Now a prospect contacted for a 6 months lease. The reason is they are building their house right now and planned to move in 6 months.
Would you allow 6 months tenant in this case? Although this is not winter time, I feel like after schools start, the interests on my rental have been much less. If I can move on with this tenant, usually what is a reasonable premium on top of normal rent per month?
Thanks so much!
I would lower the rent and still continue looking for a longer term tenant.
I would take it, with the condition, that they'll have to move out after the 6 months (prime rental time in spring, I'd think) or have max extension for 2 months, so that you can get a new tenant before school starts
Oh, and ask for more rent than a 12 month lease
I was just in a similar situation with a rental with someone asking for a shorter term lease who was remodeling their house. I said that the lease had to end June 15th at the earliest (much harder to find tenants when school is still in session) which was in the 6-8 month window they wanted, and said the rent would be higher and I asked them to make me an offer.
In my case, they didn't come back with an offer, I think they were only willing to pay the regular rent price which there is no way I would take that with turnover again in just 6-8 months.Find out what premium local apartment buildings charge for month to month leases as a percentage of the rent and chose something a little lower.
Instead I kept lowering the price until I got a good applicant. Got 3 applications on the same day, others texting and calling saying they really wanted my rental.
Usually I would say no, but if your unit is priced right and you're slim on prospects, I'd take it on the condition that they pay a premium for a 6 month lease. If they are really building a house, a 6-month lease plus 2 additional months (just in case construction/closing doesn't happen as expected), will put you right in the next prime rental season (Apr/May).
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!