Are 1 year leases or month to month leases better

[Jayden Hamilton]

My plan is to do a month-to-month lease so I can gradually increase the rent on my tenants and then when I get to the number amount that I like then I would sign a year lease with them at that price? Would this work

[Nathan Gesner]

Originally posted by @Jayden Hamilton:

My plan is to do a month-to-month lease so I can gradually increase the rent on my tenants and then when I get to the number amount that I like then I would sign a year lease with them at that price? Would this work

I'm not a fan of incremental changes. It's more likely to cause problems than solve them.

If your rent is currently $700 and you want to get it to $1,000 then it's best to get rid of the current tenants, turn it around, and rent it or $1,000. You may have a short vacancy, but the extra $300 a month will quickly compensate you.

If you start with a $700 renter and bump the rent every three months, there's a good chance the tenant will forget to pay the higher amount, that they will get pi$$ed off at the non-stop increases, or that they'll eventually not be able to afford the rent and just stop paying or cause other problems.

Summer is the best time to find a new tenant and lock them in for a year. Do it now.