Getting longer leases with standard property management

[Dimitri Paspalaris]

I was pondering as I was driving to work that most rental leases are anywhere from 6 months to two year. Has anyone tried convincing a property manager to get a 3 or 4 year lease signed. I understand that property managers make a lot of their money when signing the lease at the beginning and between leases with the signing fees, but as investor if I could keep a tenant in the property for more time I think it would be better for me. What is yals opinion. Thanks

[Nathan Gesner]

It's a bad idea.

Most tenants can't predict that far in the future. I used to do 2-year leases but stopped because around 80% of them were breaking the lease early. It also removes flexibility. In a hot market like we have today, I want the ability to change terms or increase rent every year to keep up with market. Can you imagine signing a 4-year lease in Seattle in 2015? That tenant would be 30% or more below market after four years, costing the Landlord tens of thousands in lost revenue.