Hello, new to BP and first time poster here. I have a SFP with a lease expiring at the end of September 2019. The current tenants are planning to sign another lease. Would it be wise to setup the next lease with a 9-month duration (ending in May 2020) as a means of "resetting" the end of lease month? My thinking is more people are moving in June than October, so my pool of potential tenants would be greater.
The current tenants are on their second year-long lease, and plan to stay for another 1-3 years (so they say). Tenants are very clean and take good care of the interior, so if they left the property would be cleaned/move-in ready in about a week.
Thanks in advance for your recommendations/experiences!
@Derek Donnell On the property I personally manage I give 2 year leases. My niche is medical students, don't have time to party and guaranteed money for 2 years. I tell them they won't get a rent increase in that time and they are glad to sign the lease. Why not see if they are willing to do a 21 month lease, especially if they are good tenants. Easier to rent in the summer, plus there will be more choices for them to rent or buy.
Tim's idea is a good one if you're ok with the same rate for a longer length of time. Some people here are against leases longer than 12 months, but if it makes sense for the tenant and for you...why not?
This will depend on your market. In many areas its true that less people move outside the May-Aug timeframe, but there is also less property on the market, so it balances out. In other markets, you are dead in the water if your rental becomes available after Sep 1. Step one is to figure out how your market works.
We do this when starting a lease in winter, 6 month lease typically to end in May/June. A Summer vacancy vs a winter vacancy can mean over 15% difference in rate in our market.