Low income lease

[Michael Johnson]

I have a 6 unit building with low income tenants. After a tenant's one year lease converts to month-to-month is there any incentive for the landlord to sign a new lease? I'm not seeing a benefit. My thought is that a tenant could leave without notice and my only recourse is to keep the deposit. I could sue the tenant, but for what? They have no assets. At least if they're on a month-to-month I only have to give them a 30 day notice if I want to bring in somebody new. I can also raise the rent when necessary and not have to wait a full year. Can someone disagree with me and explain why I should sign a new one year lease? Sorry if this is a no brainer, but I'm trying to understand the pros and cons. Thanks!

P.S. I'm in Colorado if that affects your answer.

[Tom Goans]

Michael Johnson,

I would consider more investment and cash flow predictability as one reason to commitment to another year lease.

Secondly, it provides the tenant with a more predictable home expectation. Remember this is their home, not an investment or rest stop.

I have an alternative viewpoint of the rental and real estate business as a whole. The business gives me the opportunity to improve the lives of others. A tenant is giving the opportunity to create a home and sanctuary. Tenants are given the opportunity to have peace of mind.

It has been my experience that if I let money rule my decisions, I will have less money in the long term. Moreover, my conscious will bother me.

Just my thought on the subject. It does not and will not apply to all. It is a unique decision to made by each individual.