Yearly lease agreement instead of month to month

[Nahal Beckam]

Hello, I have a prospective tenant that has been qualified to rent my house. They want to stay for two years minimum. I don't want a 2 years contract with them since I'd like to increase the rent after one year and I want to have the option if I want to sell next year. I don't like the month-to-month after first year either. Can I change a standard california lease agreement to be a year to year agreement? How can I phrase it to incorporate possible rate increase? Thanks

[Kyle J.]

I wouldn’t do a two year lease either. That just locks you (the landlord) in. Tenants will leave whenever they want anyway. 

What I do is an initial one year lease, then I let the tenancy go month-to-month. That way I can raise the rent whenever I want after the first year. Not sure why you’re opposed to that (especially if you’re considering selling after the first year). It works great for me, and most of my tenants have been with me for at least 5-6 years. 

Another option though, if you really don’t want to do month-to-month, is do an initial one year lease. Then, when that lease is up, decide if you want to resign them for another one year lease, and - if you do - raise the rent at that time (in the new lease).