Short term tenant willing to pay higher rent
I just had a potential tenant request a shorter term lease which would then become month to month and in exchange he was willing to pay higher rent than I’m asking.
This was a red flag to me so I wanted to get some feedback from others who may have had a similar experience.
Obviously background check and proper due diligence on my end is important and I would need to meet the tenant, gather more info etc. I’m just curious to hear about others experiences in a similar situation. Thanks!!!
Most Popular Reply
#5 Investor Mindset Contributor
- Investor
- Greenville, SC
I don't do six month leases. The premium can never be high enough to cover the cost of vacancy and turnover (especially if you are using 3rd party management...and the hassle if not). 200% turnover per year for a portfolio of long-term rentals is costly. I target well under 50% for apartment units (2+ year average stay).
And contrary to some binary members on this forum, lease terms, break fees, and judgments matter to most residents.