Lease term changes (by #22 [MO]) Dec 4, 2017 8:19 PM|
Lease term changes (by Luba [NY]) Dec 4, 2017 8:46 PM
Lease term changes (by BRAD 20,000 [IN]) Dec 4, 2017 8:59 PM
Lease term changes (by Robert J [CA]) Dec 5, 2017 12:21 AM
Lease term changes (by RB [MI]) Dec 5, 2017 3:05 AM
Lease term changes (by WMH [NC]) Dec 5, 2017 4:34 AM
Lease term changes (by S i d [MO]) Dec 5, 2017 6:20 AM
Lease term changes (by myob [GA]) Dec 5, 2017 6:34 AM
Lease term changes (by David [MI]) Dec 5, 2017 7:34 AM
Lease term changes (by NC INVESTOR [NC]) Dec 5, 2017 12:46 PM
Lease term changes (by WMH [NC]) Dec 5, 2017 1:36 PM
Lease term changes (by BRAD 20,000 [IN]) Dec 5, 2017 11:27 PM
Lease term changes (by Ray-N-Pa [PA]) Dec 8, 2017 4:56 PM
Lease term changes (by #22 [MO]) Posted on: Dec 4, 2017 8:19 PM
I'm looking to change all of my lease terms to greater than 12 months where possible. I'm thinking more months or less, depending on the month that the lease begins.
There's 2 goals I'm chasing with this:
1) longer leases
2) lease terms ending in the best months, or if not the best months, the next best months.
Lease month start, lease term
Jan - 14 months
Feb - 14 months
Mar - 13 months
April - 13 months
May - 12/24 months
June - 12/24 months
July - 12 months
August - 12 months
September - 16 months
October - 16 months
November - 16 months
December - 16 months
Has anyone tried anything like this?
Lease term changes (by Luba [NY]) Posted on: Dec 4, 2017 8:46 PM
I offer 18 month lease with no rent increase and moved it from November to May, telling that it will help tenant to save money. --69.120.xxx.xxx
Lease term changes (by BRAD 20,000 [IN]) Posted on: Dec 4, 2017 8:59 PM
My lease is clear: 12 FULL calendar months so we do pick up a partial 13th month on each lease.
I find that people leave when they want to leave. Our folks don't leave for a competitor, they leave due to life events which never happen on schedule.
FYI: our local school calendar changed to "almost" year round making May and June our best months. July was too late for schoolies because classes now start Aug 4.
Lease term changes (by Robert J [CA]) Posted on: Dec 5, 2017 12:21 AM
I don't know why you are tying to lock your tenants into a longer period. If they are going to move there is nothing you can do to stop them. And once they are gone, you have a duty to re-rent the property ASAP. --47.156.xx.xx
Lease term changes (by RB [MI]) Posted on: Dec 5, 2017 3:05 AM
Very seldom do (Original) Ideas come along.
Most are just New to the Subscriber. (person asking)
A (polite) way of saying:
there are some (Wise) Old Dogs on this Porch.
Lease term changes (by WMH [NC]) Posted on: Dec 5, 2017 4:34 AM
Robert J, people will leave whenever they want regardless of lease term, that is true.
But leaving a lease does provide some recourse to the LL, namely, the retention of SD to cover at least some lost rent.
If a tenant is on M2M and gives notice (or lease ends) in winter months, LL is stuck looking for tenants at a bad time of year. It's possible for the place to sit empty for a month or two even with diligence in looking for a decent replacement tenant.
With a M2M or lease end, it's not legally possible to retain their SD for this reason alone.
If lease doesn't end until spring, but tenant leaves in winter, at least LL can retain an SD for a lost month of rent if not able to rent right away. --173.22.xx.xx
Lease term changes (by S i d [MO]) Posted on: Dec 5, 2017 6:20 AM
#22, great topic! I was thinking along the same lines last night reading Joe Nielson's buy and rent foreclosures book, and he harps again and again on tenant turnovers (and vacancy) as one of our biggest expenses. I think the day I realized this was true (back in 2007 or so)...is the day I started to think like a businessman vs. just a wannabe slum millionaire!
Did you hear Mike Butler speak at the convention? His 3 years lease addresses some of the turn over concerns. What I really LIKE about it is he starts off with the assumption that the person will stay for at least 3 years, but preferably 6 years, and he gives them a nice carrot if they comply. 1 month free rent for folks who successfully complete 3 years and then sign another 3 year lease. I haven't tried it, but I've seriously considered trying it for some of my places that seem to turn over every 1-2 years.
All those who say they will move when they want to are correct, but there's a sub-group of folks who love FREE STUFF and will live for rewards. So many businesses have those "Buy 10 get 1 free" punch cards (or bar code cards). Loyalty programs. Something I'm looking into.
I don't know how well a period of forced extra months would work. Like Brad, I just do 12 full months plus whatever remainder of the move-in month. I think there has to be a carrot on the end of the stick, but exactly what that carrot is I don't know yet. Free rent...upgrades...etc?
Maybe an acceptable middle ground would be never have a lease terminate between Oct 31st and Jan 31st. I've found good tenants all year round, but Nov - Jan are the slowest times. --173.19.xx.xxx
Lease term changes (by myob [GA]) Posted on: Dec 5, 2017 6:34 AM
Our lease term states "lease term is 12 months minimum" and then we fill in the expiration date. That date is to suit us. For EX no renewals in Nov or Dec. Have a 3 year chart so as to keep track of when renewals are due so we don't get to many in one month. For ex Jan of 2018 calendar 5 renewals due. Feb 2018 has 3, mar 2018 has 3 Apr 2018 has 9. --99.103.xxx.xxx
Lease term changes (by David [MI]) Posted on: Dec 5, 2017 7:34 AM
Yes I also vary the lease length depending on time of year, but I allow for short leases when renting out in the winter months, 6 to 8 months . The rent between labor day and memorial day is about $100 lower, so a short lease period allows me to increase the rent (by $50) ASAP. Of course the tenant could leave, but they would incur costs to do so... wink wink --12.156.xxx.xx
Lease term changes (by NC INVESTOR [NC]) Posted on: Dec 5, 2017 12:46 PM
A few years ago we converted everyone over so that all of our leases end between April and July. I did it somewhat similar to what you are considering. If i had a tenant whose lease was scheduled to end in January I told them I was extending it through April 30 so that their lease would terminate within my preferred time frame.
I had a tenant move in this past October and offered a lease through July. He preferred a longer lease so he now goes to the following July with a 5.5% increase for the second year beginning in July.
The downside is if several decide to move at the same time. It can be both hectic and costly.
Lease term changes (by WMH [NC]) Posted on: Dec 5, 2017 1:36 PM
NC Investor, that's exactly why I stopped the "All End In Spring" leases.
Now my lease end all through the year. Still most in the spring, and none in the fall, but otherwise all through winter spring summer. --173.22.xx.xx
Lease term changes (by BRAD 20,000 [IN]) Posted on: Dec 5, 2017 11:27 PM
Another thought or two...
-Having homes come open randomly (all thru the year) helps our re-renting activity.
-I DO like and use the idea of long term leases in that MANY people will stay longer and honor the lease. If 10 residents stay an extra 2 months because the lease says so, I've just reduced my turnover costs by 20 months.
-Just realized a 16 month lease has a greater chance of paying an ELT than a 12 month!
Keep on thinkin feller!
Lease term changes (by Ray-N-Pa [PA]) Posted on: Dec 8, 2017 4:56 PM
I have a nice chart that allows me to see how many contracts I have expiring in any given month. I try to load it up so I don't have many ending this time of year.
Across the top of the chart is 12 months, and down the left side is the name of each client. I place an X in the month when each contract ends.
Its a good tool so I can send out a survey about 90 days before the lease ends. If the client lets me know what is bothering them in advance of the choice to move, I am increasing the odds that they will stay. --24.101.xxx.xxx