Minneapolis, MN · Member since 2015 · 13 posts · 3 votes
I am looking for some advice from the experienced landlords out there. I am in process of filling my new SFH and have a tenant that is interested in a 3-year lease or longer. I have yet to do the full background checks on criminal/eviction/credit but proposed tenant seems confident that there are no issues.
Other than a cap to my ability to raise rents during the lease-term, are there any downsides that I am not considering? Showing the property tonight so would really like to get your feedback and advice asap. Thanks!
I hate long leases. Longer than a month. A long lease ties your hands much more than the tenant. If you have a troublesome tenant that's not easily evictable, you're stuck. Its easy to evict for non-payment of rent. Unauthorized pet? (It's a friends, and just visiting. Extra residents? (just visitors.) Cars parked in yard? Lots of things that will cause you trouble. With a month to month, you can simply terminate the lease.
Now, you'll say "but the tenant can do the same". Yep, they can. Guess what? If they want to leave six months into that three year lease, they will. What will you do? Take them to small claims court and get an noncollectable judgment? Keep their security deposit? I'd much rather have them give me notice and leave after being there six months than to just disappear.
Its straightforward to evict someone for non-payment of rent. But lots of other things are much tougher. Suspect the tenant has a dog in your no-pets unit? But they tenant claims he's just visiting for a short time. Or an extra person or three moved in? Or tenant just causes problems with your other tenants and neighbors. Or tenant is just a pain in the rear. Those can be tougher to make a case for eviction. OTOH if you're month to month, you give proper notice and terminate the lease. Then if they don't leave you have a straightforward eviction.
There's the reverse aspect of this, too. If you do have a troublesome, but hard-to-evict tenant, and you're stuck in a long lease, you have little choice but to suck it up and deal with them. If you're month to month, and you choose to keep them, its your choice.
In Washington state, for leases over one year and that are managed by property managers, whose signature need to be notarized. The landlord or the property manager?