tenant turnover??
So often when our tenants end up waiting until AFTER their lease expires to decide whether they want to renew their leases. And they seem to think we will be okay with them going on month to month leases for as long as it takes for them to decide what to do with themselves. But…
So often when our tenants end up waiting until AFTER their lease expires to decide whether they want to renew their leases. And they seem to think we will be okay with them going on month to month leases for as long as it takes for them to decide what to do with themselves. But we put the end date in the lease on purpose and are sick of them assuming that this is okay. What do other landlords do? If we allow them to go month to month we expect that they will pay us closer to market rent than what they are currently paying. This is currently happening with 1 set of our tenants. They are now about $600 per month under market. This is a non-stabilized apt in a prime location in mint condition. They are thinking that they need to wait to see whether they should send their child to a expensive private school, whether they get a better job, whether they want to but a property. Any advice? Thanks.
Wow nice guy? what a mistake.
You need to deliver a new lease at least 4 months prior to renewal with a deadline of two months. If no response just rent it to someone else. These tenants sound awful
Month to month works fine with me because I know I’m getting matket rent for my apartments. It’s very inportant to know when rents start going up in your area. If they do, make the adjustment in small amounts. Tenants often will take a small increase with little concern. Do your best to make your relationships with your tenants as easy as possible.
We had the same situation with our tenants. We tried to increase the rent by $500 and they refused to pay this amount. just like that. Then they went into contract to buy a property and agreed to pay $200 more.
We were in difficult financial situation but had to swallow because we did not have a nerve to kick them out with one toddler and one baby on the way. nice guy route does not pay. They moved finally 7 months later.
We re-rented this apartment in less then a week for $1100 more.
I think we have to reconsider our “nice guys” approach. We have children too.
Thanks for all the comments everybody. We offered and delivered them new leases. They lied and said they were going to put them in the mail. Now they say they don’t like the lease amount (10% rent increase, was just up much less than that previously) and want to explore their other options.
Did you offer them a renewal lease, either a fixed term or month to month, prior to the expiration of their current lease? If you didn’t then you can only blame yourself.
It is the landlords responsibility to offer a new lease or to issue a notice of non-renewal if you do not wish to continue under the current terms. This can be done at any time but the most appropriate time is about 2 months prior to the expiration of the current lease.
If you are offering a new lease, specify when you need a decision by and state what will happen if you do not hear back, i.e. that you are assuming that they do not want to accept the new terms you have set forth. If the time passes with no response, follow up with a notice that the lease will not be renewed and give them a 30 day notice to vacate.
The way you describe the situation you make it sound like you are waiting for the tenant to tell you what they want to do but have not set forth what you want or any timeframes.
If you want something different from what they want you can try to work out a compromise or you can be a hard ass, that’s up to you, but if you just sit around and do nothing why would the tenant offer to pay you more money? They are happy to maintain the status quo ($600 under market) and aren’t going to rock the boat.
I would try being honest. After all, this is a business transaction, not a gift. They should understand that you have the right to get market rent for the apartment, and that a lease (with possibly higher rent) is the fair thing to do. Give them a few months notice but let them know a lease is not optional.
Good luck.
You can raise the rent as often as you like when there is no lease. Not recommending it but that is the upside to no lease
You can raise the rent as often as you like when there is no lease. Not recommendnig it but that is the upside to no lease
The nice guy approach is always best, but I have the conversations with the tenants before the lease expires — the thing to do is to have the conversation months before the lease expires and have them make the decision by the time the lease is up what they want to do. I like the structure of a lease and sticking to it, but that’s not to say you can’t work something out with the tenant. I just don’t like open ended arrangements in general. I like sticking to the deal. I am good to the tenants but I ask that they stick to their side too and pay me on the 1st and stick to the lease, which is a contract after all.
Good luck.