Pros/Cons of Lease Renewal in November
My first turnkey rental is coming up on one year in November. These tenants are a couple with two small children making a combined 5x the monthly rent. So far, they’ve paid on time each month without a peep and no issues with the property. I asked PM about rental rates and possibly increasing it. Their recommendation based on local market conditions is to leave the rent amount as-is, although the decision is ultimately mine. I am considering having them ask the residents to sign a 1.5 year lease, which puts the end month in May as opposed to November. My logic is that when they eventually move out, it will be easier to fill the vacancy in the warmer months than in November/December. While they‘re willing to ask the resident to sign a 1.5 year lease, they said that their leasing department generally stays steadily busy year-round, even in December (as far as move-ins go) but that they‘re generally able to turn units faster in these months than in the summer. They said that it generally takes longer in other months to get homes rent ready, so it will likely all average out. So, with all that said, I guess I have 2 questions:
1.) Should I renew the lease for the standard one year, ending in November, or should I try to renew for 1.5 years, ending in May?
2.) Should I try to raise the rent amount in either scenario? I’m almost thinking to maybe offer tenant two options: same rent if they’ll sign 1.5 year lease or slight rent increase (maybe $25) if sign a 1 year lease. What do you guys think?