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Updated over 3 years ago on . Most recent reply

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Jacqueline Blue
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Would you do a 2 year lease for you first ever rental?

Jacqueline Blue
Posted

My husband and I are renting out first place (yay!). We have a few people lined up to see the place. But one of the best potential tenants on paper asked if we would do a 2 year lease for a slightly reduced rent. 
they are moving to our state, one person has a job here and is already working for said company, amazing credit and no debt at all. The other person (their partner) is starting a new career and so doesn’t really make any money. But the first person make enough to cover the rent and then some. 
I guess my question is would you all do a two year lease for for very first lease. Or are we getting in to trouble? All stories, thoughts, and feeling are welcome. 
Thanks for your time. 

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
41,130
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied

@Jacqueline Blue in my experience (hundreds of rentals, 12+ years) tenants will often ask for a two-year lease as a means of enticing you to take their application over others, or to talk you into lowering your standards or rent. I used to allow longer leases, but at least 80% of them left before the full term. Most renters can't say where they'll be in two years. Also, it can make it more difficult to remove them if they are problematic.

Stick with your plan of one year. No discounts. Wait for a well-qualified applicant. Tenants that offer more than you are asking (longer lease, cash in hand, offers to renovate for free, etc.) are all red flags.

  • Nathan Gesner
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