Do you charge more for month to month vs. 1 year lease?

Question

Hi all,

Do you charge a higher rent for someone who wants a month to month lease from the beginning?  If so, how much more?

I would obviously prefer a tenant who plans to stay for a year, but want to offer the option since this unit is going to have a vacancy in the 'off season' (this is a college town)  I am wondering if charging $515 vs. $500 per month would be fair, or should I be charging more?

Thanks!
Kelly

Tevis Verrett · Answer

Good thots all.  I use month-to-month as a penalty so I make is expensive.

Want to treat my property as an extended stay hotel?  Pony up $100/mo extra bucko!

Usually it is at the end of the lease where the my beloved tenant is contemplating whether to reup for another year.

Take into consideration that Im in Los Angeles, so rents are skyrocketing  (yeaa us!)

YMMV in your neck of the woods,

Tevis

Scott W. · Answer

anything under $1000 rent do month-to-month; over $1k year-over-year.

Brandon Turner · Answer

I don't. I prefer not to have 1 year leases, so I just do month-to-month. I want to be able to kick people out if i need to. But that's just my style!

Steve Babiak · Answer

I do because I am able to get tenants who will stay for a year, so on month-to-month I know I will be having a turnover sooner.  Some BP members only do month-to-month, so they probably don't charge extra.

If you have one month of vacancy, that is 8% or so, just to give a perspective ...