Short term lease or long term?

Question

Collin Goodwin · Answer

I have tried every which way when it comes to length terms and have settled on a year for all of our tenants. At one point, we carried the logic that of we kept tenants on month-to-month, we retained the ability to not renew them at any point due to lease infractions or poor behavior. What we found is that this type of lease attracted transient type tenants and we were releasing units every few months. My logic is have a strong lease, put them in there for a year, and hold them to it.

Michele Fischer · Answer

I love the flexibility of month to month and would not sign a longer agreement. When applicants express concern about not locking in, I let them know that they can stay as long as they want as long as they pay on time and follow the rules and that I only raise rents annually.

I suggest you look at what terms are offered in your market. If there are no other 3-6 month terms, I probably wouldn't be a trail blazer.

Usually you want to get rid of a tenant due to non-payment, damage, or blatant disregard for your rules. Agree with earlier advice that solid wording allows you to end a contract early for these reasons. Knowing and looking for red flags on applications and being willing to wait for a quality tenant goes a long way toward weeding out the terrible tenants as well.

Shawn Mcenteer · Answer

You can always try a 3-6 month lease but that may deter potential tenant. I think a strong background check and strong lease will work best for you. I would do lease that ends in a good tenant selection season. For myself we just entered an 11month lease with our tenants because we wanted the lease to end in May that way we can replace they in a prime time market for renters ( or resign them on 1year). I would have done a one year lease to start off but for the above reason it worked out fine doing 11 months. For you a 3 month lease means you may have to find a new tenant Dec/Jan, not a great time to be filling a vacancy.

Chad Hale · Answer

Month to month leases are preferred. Tenants can easily break leases and are often only on the hook for 1-3 months rent if you end up in court to enforce. Much harder for a landlord to break a lease.

Most people in my area are concerned about rent increases. I'll add an addendum stating no rent increases for a 1 year.

Advertise as 1 year lease to filter out short term lookers.

Short term lease or long term?

Short term lease or long term?

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