Tenants lease is up in a couple of
Months and they said they probably need about 6 months.
1) does the lease you have them sign expense licotoy speak to the cost orndo you dealnwirh that when the time comes?
2) if they go month to month, how much premium do you charge?
3) if they do a 6 month lease (after the 1 year lease completes) how much premium do you charge?
The tenant has been a good tenant but they are planning to
Move out in January which could leave me with the house open for 4-5 months or someone signing a 12 month lease in January-ish which means the problem (less than optimal) will co ti is for me with next tenant
Yep, you want to charge a premium. There's no rule but I'm imagining you'd want to cover a month's worth of expenses if left vacant in January.
So total ALL your monthly cost and pro-rated costs.
Divide by the number of months you think they will stay. Let's say 5 months
Add the cost to your normal rent and see how it feels. If it's too high, then reduce it. The goal is to base your decision on something real.
Hope that helps.
We tell our tenants that after the lease term ends it automatically goes month to month. I don't want to lose a good tenant so we keep going. Don't rock the boat with a good tenant. just keep going. No premiums, no hassles, just keep the tenant.
Depends on the unit and the tenant, but generally for our better tenants we just allow them to go month to month, with or without an increase depending on what the market is doing and whether we want to keep that tenant or not. We only usually do one-year renewals if the tenant asks for it. If I think they are keen to move in the winter we will charge more for the M2M option.
All my tenants are on M2M. No additional cost/premium to tenant.
Our leases start as one year and then automatically go month to month at the end of the year. We've had houses with one tenant for 4+ years in that mode..
If they say they're gone in 6 months I would look at the time of year and how easy it will be to rent the house. We recently said no to someone going month to month because they wanted to end after school started and the school district is the key reason people want that house.
I agree with @Hai Loc We keep our A/B tenants on one year leases. We charge the renewal rate plus 5% for 6 month renewals and the renewal rate plus 10% for a month to month renewal.
You indicated a move out in January could cause “4-5 month’s vacancy”... if that is even remotely accurate you’ve got bigger problems than month to month vs term lease.