Breaking a lease early
My property manager in Michigan let me know today our tenant is breaking the lease early due to a move out of state. Background, this is for a 4 bedroom 2 bath house, nice yard in a nice neighborhood. The property manager let them know their liability for paying the lease, utilities, and maintenance until they place a qualified tenant.
Here are my questions about it:
The current lease expires end of June. Property manager says they cannot legally raise the monthly rent of the unit, it must remain the same because technically, the new tenant will be taking over the existing lease. Since this is a terrible time of year to find tenants (I assume), I asked if we could have the lease expire at the existing term. Meaning not a 12 month lease for the new tenant once we find one. She doesn't recommend this. No explanation why yet. In your experience, is that because tenants prefer a year long lease?
The reason for my question is that from checking around, I am finding rents in the area are a bit higher (About 200.00/month) than what we are charging now. (Tenant had a multi-year lease) So I want to raise it to align with the market as soon as we can. I don't want to lock into a year or longer again.
Thanks for your experience and feedback!