Help! Should I do short term leases?

Question

Hey guys. Just started advertising for a new tenant for the first time. I already have quite a few people looking for shorter term leases. How would you guys approach this? A 12 month lease and allow subleasing? Or would you allow shorter leases? My only major concern, since I'm in Minnesota, is someone wanting to move out in the middle of winter. Thanks

Nathan Gesner · Answer

I advertise everything on a one-year term. If they want less than that, I allow a month-to-month lease with a 25% increase to help offset the increased risk of turnover, particularly in winter months.

Scott E. · Answer

If you only want a 12 month lease, you should be advertising the unit it with a 12 month minimum. That should deter the inquiries from people interested in shorter term leases.

Personally I'm fine with offering a shorter term lease at a significantly higher rent rate (but I do live in a different climate).

Amber Gonion · Answer

@Noah McPherson. Short term leases are fine as long as they don’t end in the winter months.  All of the large companies that I worked for would not allow leases to end during winter months so the tenant pool is lighter and usually less desirable.

Noah McPherson · Answer

@Daniel Anshus thanks I'll keep that in mind. And @Justin Bauer that sounds like a great idea actually. I'll keep that in mind for the future

Noah McPherson · Answer

@Mary Smith thank you. Sounds like others are saying don't sublease as well, so I'll avoid that

Noah McPherson · Answer

@Scott E. They just wanted a shorter term lease because they travel for work. However, she did pass screening and income requirements, so I elected to give the short term lease a try. I do live in an extremely cold climate though, so I'm not sure if I'll have to learn the no turnover lesson the hard way lol

Ryan Schroeder · Answer

We only do 12 month leases and have a 60 day notice period.  When people have asked about an early termination or shorter lease we say two things.  First, we do not allow lease terminations between October and March.  Second, they are responsible for the entire 12 month  lease, however, we will attempt to get it leased early if they wish to break the lease so long as the apartment is in leasable condition (Clean) and second that they are flexible in my requests for showings (as in I'll notify/ask but need them to say yes I can show the apartment on short notice).  BTW, we do not allow a tenant to break a lease "just because" but we will for a job transfer out of the area or purchase of a house.  If they are not comfortable with that response (my sticking with the 12 month lease) they can rent elsewhere.

Scott Mac · Answer

If they are shakey about the economy (may lose their jobs) and that's the reason for a short term lease--ask yourself--can you do any better at this time, and how long will it take to get an acceptable renter.

Just my 2 cents.

Daniel Anshus · Answer

@Noah McPherson if your property is in the Duluth/ north shore market I would check with the local str guidelines. There’s been a lot of changes there recently.

Justin Bauer · Answer

Hey Noah what I do is explain that my lease is 12 months and I don't want someone in my property that don't want to be there and will try to fill the vacancy but they are responsible for rent and utilities until if fill the vacancy. I charge them a fee to fill the vacancy. Best of luck to you!!

Help! Should I do short term leases?

Most Popular Reply