Month to month v. lease and rent raise

[David K.]

After meeting with my attorney the other day he suggested in new rental agreements to do a month to month basis for some very good reasons.  In the state I invest, its much easier to get rid of a problem tenant.  He also mentioned why hold someone in a home they don't want to be in, could be a problem, let em go and move on.  All new rental agreements are done this way now.

I have a good tenant who always pays whose 1 year lease is coming due.  I sent her the new month to month agreement.  She contacted me and asked for another year lease as she feels more comfortable that way.  I explained to her I wasn't planning on raising the rent every month etc., but still insists on a new lease instead.  I included a $25 month increase, (I'm still low for the market, but she's lived here for years).

Wondering if I should agree to do another 1 year, lease but a slightly higher price or just give her what she wants since she's been good for years.  Thoughts?

I have many units of property and tenant turnovers are my biggest cost, so I try and keep vacancy as low as possible.  Please only respond if you have multiple units or property, thanks guys!

[Chinmay J.]

Originally posted by @David K.:

After meeting with my attorney the other day he suggested in new rental agreements to do a month to month basis for some very good reasons.  In the state I invest, its much easier to get rid of a problem tenant.  He also mentioned why hold someone in a home they don't want to be in, could be a problem, let em go and move on.  All new rental agreements are done this way now.

I have a good tenant who always pays whose 1 year lease is coming due.  I sent her the new month to month agreement.  She contacted me and asked for another year lease as she feels more comfortable that way.  I explained to her I wasn't planning on raising the rent every month etc., but still insists on a new lease instead.  I included a $25 month increase, (I'm still low for the market, but she's lived here for years).

Wondering if I should agree to do another 1 year, lease but a slightly higher price or just give her what she wants since she's been good for years.  Thoughts?

I have many units of property and tenant turnovers are my biggest cost, so I try and keep vacancy as low as possible.  Please only respond if you have multiple units or property, thanks guys!

 If someone has lived there for 'years' (as you said) its obvious that they don't want to move and consider your rental property, as their home. Your tenant is afraid that you will change your mind, one fine day, and decided that you no longer want her.   That is common tenant psyche. 

Your attorney is not qualified to speak about tenant psyche unless he is a landlord himself.  Tell him to stick to the legal part. 

If someone is long term tenant, I would be very willing to give them a year long lease.