Registered: 1330451533 Posts: 1
Reply with quote #1
I've found a potential tenant for my condo. She is insistent upon a long term lease "3-5 years." I am considering a 3 year, but have some concerns. Does anyone have any advice? My rent is already at the top of the market, so unless the rental market soars, I'll probably be ok. I'm thinking it's better to have a constant tenant, with less turn over & vacancy time. Is there anyway to write in a potential rent increase each year? Does anybody have any advice on this?
The tenant is an elderly lady, who's selling her house & moving cross-country to be near her daughter. She does not want to have to move again.
I will obviously be doing a full credit & bacground check on her.
Registered: 1169270040 Posts: 3,776
Reply with quote #2
Yes, you can write a "cost of living" increase into a lease. It must specifically state what the increase is and what dates those increases take effect. However, before you write a 3 year lease, check your state law. Many states prohibit leases longer than 2 years. If you wrote one for 3 years in such a state, it would be invalid. If so, explain to the tenant that you cannot by law write a lease longer than 2 years, but would be happy to insert a clause allowing her to renew the lease upon expiration.
Registered: 1323412494 Posts: 445
Reply with quote #3
You might even consider what is in many commercial leases-- automatic option to renew after two years. this means that the tenant has the rights to demand to renew as long as they have kept up their part of the lease-- but the LL can not demand that the tenant renew. Only issue I see for you is if you want to sell, the buyer would have to honer the lease.
Registered: 1333917848 Posts: 21
Reply with quote #4
I just got burned by a tenant on a 3 yr lease. Won't ever be doing that again. Live and learn i guess, but I think I will stick to 1yr and then renew option unless it were a can't miss applicant then possibly go two yrs.
Registered: 1479133218 Posts: 30
Reply with quote #5
You can write a potential rent increase in your lease. And you have there some good recommendations how to do it right. But, even if the rent increase is stipulated in the agreement, you still need to give your tenants a notice before raising the price. Very often it should be a 30-day notification. However, it depends on the law of your state and the amount of increase.