Tenants want to stay until end of Summer.

[Nadir M.]

I currently have a rental property in the Midwest that’s is about to become vacant. Lease expired last month but tenants chose to stay month to month through May. They’re currently asking me if they can stay through July and potentially August. They’re great tenants, they pay on time, I’ve had no issues. The house is in a decent location. I would say B- to C+ neighborhood.  The issue I’m facing now is that I do not want the property to become vacant end of Summer as I feel that I would have better chance of securing a great tenant in the beginning of the season. I have another property that’s about to become vacant as well end of May. With how the market is going I feel like I shouldn’t have a problem renting and will potentially get more rent, and more importantly a year long lease, instead of waiting until September which will make it harder to find the quality tenant  that I usually screen for. No sure if they tenants will asked to renew for a year after August. 

Wanted to get everyone’s opinion on this situation. What has worked best based on experience and should I really be concerned about property becoming vacant in September? Any help is greatly appreciated. 

[Bill B.]

Just add to the rent for the new market rate (10-20% more?) and then usually an extra $100 or $200 for month to month (Depending on if this is a $1,500 or $3,000/mo rental). Just like every other subscription business, a year long deal gets you 20-30% off, that’s what a year long lease is.