Lease Extension
Hi–I offered my tenant a one-year lease extension at the same rent they paid last year, and they stated that they were under the impression that the tenancy would automatically become a month-to-month since that is what they have done in the past (i.e. under the previous owner). I am not very comfortable with the…
Hi–I offered my tenant a one-year lease extension at the same rent they paid last year, and they stated that they were under the impression that the tenancy would automatically become a month-to-month since that is what they have done in the past (i.e. under the previous owner). I am not very comfortable with the idea of a month-to-month tenancy. Any advice on how to handle the situation?
Ditto what the above poster started with – that they are also at risk of you finding a new tenant, or raising the rent, if you go month to month. (I always prefer a lease when renting myself.) Maybe their experience is in rent-stabilized, where they have more rights than in a non-stabilized building, and they aren’t aware of what applies in your (non-stabilized?) building.
Then, instead of writing to strangers here, COMMUNICATE with your tenants. Tell them you prefer knowing you have tenants for the next year. Tell them you’d like to keep them as tenants (I’m assuming you do, since you gave them a new lease.) Ask them why they would prefer month to month.
They aren’t necessarily looking for a better deal. Maybe they are hoping to buy, and aren’t sure you’ll be reasonable about letting them out of the lease if they close on something mid-lease. Maybe they are thinking of moving to a different neighborhood or city. Maybe they don’t see themselves being able to afford your place much longer. Maybe their relationship is rocky and they think they may split.
Depending on their reasons and personality, they may tell you, they may not. If they do, you can work out something that works for all involved, if you want to keep them. For example, if they are thinking they might buy, tell them you’ll let them out, with decent notice to you, if they do. Or, if you put too large a rent increase in there that they aren’t comfortable with, maybe they can tell you how much extra they would be willing to pay this year, and you can come to an agreement.
As we tell kids, “use your words” – they often work.
If it is that they ARE looking for a better place, ask them if there is something about the apartment they don’t like. (What they don’t like, say, needing a new refrigerator or something, other tenants won’t like as well.)
Is that month-to-month for you too? A lease is to protect both parties. Ask them if they would be OK if you started looking for a new tenant and would ask them to move when you found one? I think they would prefer the protection of a lease to that scenerio.
Ditto. A year lease is a good thing. You get to sit down with the tenant and go over the ‘deal’ with them. You get to decide; it is your place. If they don’t like it, they can find another place. Tell them that is your policy.
Me, too^^^^
I recently started one or two threads on this same topic. Look through, had received some good advice there. This is the best time of the year to find a new tenant. Better to find a new tenant now than to be put in the position of advertising in the Winter when no one is looking to move.
I think you have to give them the terms of the lease renewal within a cetain amount of time before the 1st year is up, otherwise it would automatically go month to month. It also goes month to month if you do nothing. However assuming you gave them the renewal terms soon enough and they refuse you can have them leave. Conceptually it is similar to month to month because in a month to month either tenant or landlord cand end the relationship with a month’s notice. You can think of it like this, if they want to go month to month, fine, but tell them they need to be out by the end of the first month
They could also refuse to sign and move out when the lease expires. If that is a concern of yours offer them a lease with a 60 or 90 day opt out.
Agree with ^^^^^
yeah, agree with the others.
You are the LL, this is your building.
What they did in previous buildings has nothing to do with yours.