Leases-Fixed Term or Continuing??

[Alan H]

From: Alan Hill


I would be interested to hear from some that manage their own properties, what they tend to do when their Fixed Term Lease Agreement expires and their tenant wishes to renew? Do you normally complete a new lease or just let it continue on a month by month basis from the original lease? Pros and cons of each option? Thanks in advance guys!

 

[IanF]

Reply: 1
From: Ian Findlay


We just let it renew month by month. We take the view that its better to
give the tenant flexability rather than having a tenant who wants out and is
likely to do some damage or be difficult.

Ian


> From: "Alan Hill" <[email protected]>
>
> I would be interested to hear from some that manage their own properties,
what they tend to do when their Fixed Term Lease Agreement expires and their
tenant wishes to renew? Do you normally complete a new lease or just let it
continue on a month by month basis from the original lease? Pros and cons of
each option? Thanks in advance guys!
>
>
>
> To reply: mailto[email protected]
> To start a new topic: mailto[email protected]
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>

 

[GoAnna!]

Reply: 2
From: GoAnna !


Hi Alan

For me it depends on the type of property and whether it has seasonal highs or is in a high rental demand area.

For example i have one property that is in a high rental demand area and has no seasonal highs that I can easily identify so I let it go over to a month by month. Past experience has also shown that tenants tend to stay a little longer than they originally intended. I guess they keep putting off the decision to move and before they know it another year has passed. Or in the case of my current tenant 4.5 years.

Another property I have is very seasonal and the peak time to rent is January. Although I settled in June I set up the original lease to align it with ending in January. This way I can ensure that when I relet it rental demand is high and I get the highest rent possible.

Hope that helps : )

GoAnna !
(aka Anna before she got real)

 

[WebBoard]

Reply: 2.1
From: Samantha Lind


Hi,
Or if you want to lock them in for another extended period you could offer them incentives to stay.
Sam