Rental Property Investor · San Antonio, TX · Member since 2018 · 11 posts · 7 votes
Tenet's current 1 year lease will complete in Aug 2021, tenant want to stay for 4 more years with reason of child school. so far tenet behavior is good in terms of Paying rent on time, Keeping property clean, Sometimes fixing things by them self and not disturbing other tenet.
Should I sign 4 years lease with rent increase ? or sign 24 months lease with rent increase ? or just stick to the yearly lease formate ?
Note: Property location is in North Austin TX area.
Two years max UNLESS their was a rate increase year two. If you don't keep up with rents you could find yourself hundreds under market rent. Then when you play catch up the tenants MAY want to leave. I have been forced to raise everyone this year. So far nobody has left but definitely had some push back.
If you have a good tenant that you feel is taking care of the property it's important to keep them. Since you like the way the tenant has been maintaining the property I would suggest being open to a 2 year lease. That way you can show that you are interested in continuing to rent to them but are not obligating yourself to a 4 year commitment. If after the 2 years they want to renew and you agree then you can make another 2 year lease. But it's important to give yourself the option to renew. If you want rent to increase each year I would work out the terms and make sure they are explicitly stated in the lease when rent increase occurs and if the security deposit needs to increase accordingly. I advise that you work with a licensed real estate agent or broker when drafting up the lease to help you with the terms. Good luck!