Brooklyn, NY · Member since 2015 · 127 posts · 21 votes
Hi BP I was speaking to a local Real Estate Lawyer who advised me not to give a lease. He says it doesn't do the landlord any good. He said that he gives the best rental price which is the lowest and tells the tenant to look at other places and prices then tells them his rules. He told me that if a tenant has a lease and is a professional bad tenant they will not pay go to court pay then do the whole thing again and the lease protects them. If they don't have a lease you can move to evict a bad tenant because they have no legal right there.. His place is duplex..
I also asked my banker and he told me the same thing. He said he gives his tenants a Rider with the rules but no lease.
Both of them said if the tenant doesn't want to stay they can leave as long as they don't destroy anything they get there deposit back and if they don't want the tenant there they can tell the tenant to leave. They both said becarful with the tenant who ask for a lease.
If you hired a lawyer, you should follow his advice, but based on my experience, this sounds like a terrible idea for several reasons.
Even without a written lease, you tenant is still a tenant and has all the rights and protection provided by the state. This type of lease is called a "Tenancy at Will". While an oral lease can be binding in most states, you will have an impossible time with any lawsuit that ever goes to court. Any issue that arises is going to be a Landlord Said vs Tenant Said and the judge is going to rule in the tenant's favor - this is a professional tenant's dream. The only advantage I can see (from a Nevada Perspective) is you can provide a pay or quit notice two days earlier. Not worth it, IMHO.
Setting your rent at the bottom of the barrel is likely to attract tenants is likely to attract the worst tenants and provide you with the lease NOI possible.
If you hired a lawyer, you should follow his advice, but based on my experience, this sounds like a terrible idea for several reasons.
Even without a written lease, you tenant is still a tenant and has all the rights and protection provided by the state. This type of lease is called a "Tenancy at Will". While an oral lease can be binding in most states, you will have an impossible time with any lawsuit that ever goes to court. Any issue that arises is going to be a Landlord Said vs Tenant Said and the judge is going to rule in the tenant's favor - this is a professional tenant's dream. The only advantage I can see (from a Nevada Perspective) is you can provide a pay or quit notice two days earlier. Not worth it, IMHO.
Setting your rent at the bottom of the barrel is likely to attract tenants is likely to attract the worst tenants and provide you with the lease NOI possible.
Homeowner · VISTA, CA · Member since 2015 · 726 posts · 340 votes
10y
It really depends on your short and long term motives and goals. Also whether it's residential, commercial or industrial. It can be a win win for tenant and landlord if structured to the mutual benefit of both.
That stated, if it's a residential in a no rent control area it would be in the best interest of the PO to maintain a month to month or a one year max. I've done and had it both ways and it has worked well for me both as a landlord and a tenant.
Brooklyn, NY · Member since 2015 · 127 posts · 21 votes
10y
Thanks guys basically I will be house hacking so i would be living there and will explain that I like to party but not at my house and rent is due on the first...it's just a duplex and no rent control....
Real Estate Broker · Windsor, CT · Member since 2015 · 1k+ posts · 268 votes
10y
@Will Bert if you paid for the advice of a season real estate attorney I would suggest you follow their advice. It also depends on the state that you are because some states have many laws that protect tenants.
Investor · Denver, CO · Member since 2015 · 570 posts · 521 votes
10y
Barring the fact that this might be something unique to your location, one of the biggest things to consider that even though almost any lease can be broken, that courts always side with tenants over landlords and all the rest of the things that we "in the know" know about, the most important and most powerful thing about a lease is that the majority of people don't know what you know, and the majority of people will never challenge your lease, the fact that there is a lease is usually powerful enough for most people to simply follow it.
BINGO - - I don't offer a years lease for this vary reason - - instead I use a 3month with renewal to m/m. A full years lease grants all the powers to the tenant.
Real Estate Agent · Henderson, NV · Member since 2011 · 1k+ posts · 550 votes
10y
@Jeff B. is offering good advice. I'd like to chime in as well. It looks like you're thinking about this backwards. Your primary goal should be to attract the best possible tenants for your vacant unit. If you market, price, and screen applicants correctly, most of your headaches will be eliminated. High quality tenants are going to expect some sort of written agreement (lease agreement, rental agreement, ect). Each state will have rules regarding what minimum language needs to be in the written agreement (lease agreement, rental agreement, ect). Sitting down with an approved applicant/future tenant to go over the lease agreement gives you a great opportunity to forge the expectations of you and the tenant. Again, this helps filter out most problems on the front end. A written agreement doesn't have to be for a year (unless your state has other rules). Even if you were going to do a month-2-month situation, I a written agreement is a must.
Now, I'm not an attorney. So this is not legal advice. I am a property manager that deals with tenants every day.
Brooklyn, NY · Member since 2015 · 127 posts · 21 votes
10y
@PhillipDwyer Yes it has 2 separate apartments and I will be in 1 of them
and I will take the advice and put the rent at market...I'm going to use a real estate agent and do my own screening with the online tools I seen on here
@Will Bert This must be a NY thing. I would be concerned if my landlord wouldn't give me a lease!
Nyc is a tenant passive place the city doesn't want homelessness and they don't want to take the bill of having to pay for a family to live.. Nyc is over crowded and so are the shelters...so the courts grant the tenants extended stays and then the sherrif also take 30-60 days..so yea its a NY thing lol