I have a good tenant who has been with me for a year, with the lease set to expire in October. I'm planning to renew the lease starting November 1, 2024. It took about two weeks to find the current tenant back in October. Although the rental increase will be modest, I am considering waiting until April 2025 to send the renewal, which would then start on July 1, 2025. Given the location near UIC, its a good time to get students in and the general population.
I'm also contemplating offering a 20-month lease, though I worry it might seem daunting to the tenant.
Why not talk to the tenant and give them the options? If you switch to month to month (ie wait until April to do the renewal), I'm not sure they'd be willing to switch back to a lease. For a tenant, the month to month gives more flexibility (with the risk that the owner could sell or give them notice).
I have a good tenant who has been with me for a year, with the lease set to expire in October. I'm planning to renew the lease starting November 1, 2024. It took about two weeks to find the current tenant back in October. Although the rental increase will be modest, I am considering waiting until April 2025 to send the renewal, which would then start on July 1, 2025. Given the location near UIC, its a good time to get students in and the general population.
I'm also contemplating offering a 20-month lease, though I worry it might seem daunting to the tenant.
Agreed with @Theresa Harris. Talk to the tenant and see what lease term they are interested in. A 20 month lease could be desirable for them.
Having a lease expire in the spring or summer comes with pros and cons. On one hand, you should be able to fill the unit more quickly if the tenant decides to move. On the other hand, the tenant may be more likely to move to a different apartment since there are more options on the market and they could find a better fit.
I think you can make an argument that it's actually better to have leases expire in "slower" or less desirable moving seasons like the fall and winter. For example, if your lease expires 12/31 how many people are actually going to be motivated enough to move after the holiday season and in the midst of winter? Probably not many unless they are really unhappy and motivated.