Setting Leases to end in Peak Months?

[Mike Hsiao]

I have a 4-plex in Normal Heights, and just getting started with managing the property.  One of the units leases will be ending at end of September.  I believe they want to renew the lease, but I'm thinking of only extending to May 30th 2024, so that it ends at the start of the peak rental months. Even though I don't think September 30th is too bad, my thought is that kids are back in school and it cuts out that pool of renters. Albeit, Normal Heights doesn't have a lot of families.   I was planning to do this where I can for each unit moving forward that 

I'm sure rental demand and maybe rental pricing drops a little in Nov/Dec/Jan/Feb timeframe, but overall I think this area should fair decently year round.  I think...

I'm curious to get thoughts and/or pro's/con's of others that have property somewhat near or around this area in San Diego. 

[Dan H.]

Quote from @Mike Hsiao:

I have a 4-plex in Normal Heights, and just getting started with managing the property.  One of the units leases will be ending at end of September.  I believe they want to renew the lease, but I'm thinking of only extending to May 30th 2024, so that it ends at the start of the peak rental months. Even though I don't think September 30th is too bad, my thought is that kids are back in school and it cuts out that pool of renters. Albeit, Normal Heights doesn't have a lot of families.   I was planning to do this where I can for each unit moving forward that 

I'm sure rental demand and maybe rental pricing drops a little in Nov/Dec/Jan/Feb timeframe, but overall I think this area should fair decently year round.  I think...

I'm curious to get thoughts and/or pro's/con's of others that have property somewhat near or around this area in San Diego. 

 We do what you suggested and it worked great until last year when for some reason I had more turnovers than our usual by far.  I was flipping 4 units during the summer and some of them were not easy turns.  I had the financial resources to still take the usually family vacations, but at the expense of increased vacancy time. 

However, we did not change anything.  We looked at it like a freak year.  This year we have our first vacancy of the year in Sept (tenants were fighting so we gave both units the opportunity to terminate the lease Sept 1, of course the one with rent significantly below market rent decided to stay and the one near market rent took us up on our offer (we will only be able to raise rent ~$100)).  

Also recognize that tenants sometimes break their leases and leave at other than lease end.  The LL is obligated to turn the unit and re-rent it in a timely fashion.  In my opinion this does not include needing to cancel vacations; judge May have different view.  Or you can have issue where you allow tenant to choose to terminate their lease due to various circumstance (such as tenant unhappy or because tenant is pain in the a$$).  My point is just because leases terminate in May does not mean that all turnovers will be in May.  

Good luck