Rental Property Investor · NJ · Member since 2019 · 442 posts · 40 votes
Hi everyone.
My tenants lease is up June 1st, and she is moving to a different apartment [she was supposed to get a $30 increase if staying...),
yet she wants to stay one extra month, because her new apartment is going to be available July 1st
how do you guys handle this I love to get a lot of strategies,
Thank you
Considering it's 05/01 right now and I'm assuming that you don't have a new tenant lined up. If that is the case, I would allow your current tenant to extend and then use the extra time to find a new tenant. Now if your current tenant lease is actually up on 05/30, then it's up to you to see if you have any new tenants lined up, if not then I would personally extend.
The one challenge is that if you extend, your lease term end should be 06/30. Then the question is how confident you are that she will leave on time and if you have enough time turnover. Another solution is too set it up lease and have her actually end on 07/05/2019, giving her time to move and you time turnover. You could just prorate the amount to her for the extra days and deduct from the new tenants who can move over the July 04th holidays.
I would see if you can't get a premium for the extra month or if she keeps the place clean and you will not have to do anything major to re-rent ask for a compromise at the same rent amount.
That she agree to you holding several open houses (no more than 1 per week with advanced notice). That way you can get a lease signed with your next tenant before she even moves out.
You can either let her go month to month on June 1st (if your original lease allows this and assuming it specified that amount of rent increase at the end of term) or, since your lease likely does not cover that, get her to sign a new one month lease for June. Rent = old rent + $30 (as I'm assuming was stated in your lease expiration notice.) Make sure you have good holdover language, and make sure she understands that you will have the right to show it for the entire month of June. (assuming you show your properties while they are occupied.)
I personally would only consider the extension if this tenant has been a good tenant, pays on time, and keeps the place clean so that showings look good.