tenant wants to stay for 3 years+, what to do?

[Account Closed]

 tenant intiially voiced they wanted to stay at least 4 years due to the school district before signing. 

we are almost through year one with them, and will need to restructure our lease in a few months. they have been fine tenants.

i was thinking about incentivizing it, but want some expert opinions. 

they currently pay 2795 a month, but a total of 2863 with the property mangement fees( pet and "convenience" fees) but we are getting rid of our property mangement company and doing it ourselves. trying to think of the best way to pitch this

so what i was thinking was:

2863 for 3 years ( it would stay flat for 3 years)

2925 for 2 years (flat for 2)

2975 for 1 year

thoughts?

[Alecia Loveless]

@Matthew Sharman I just wouldn’t recommend signing a lease for more than one year. It’s not worth it. Too many things can happen in the market causing rents to skyrocket. Or something could go wrong that you need to get the tenants out. You never know.

I’ve been effectively “incentivizing” tenants in one building to continue renewing their leases in a town where I haven’t been able to find any comps by not raising their rents for 3 years. Two nights ago I FINALLY found my first comp and realized my rents are now $400 under market value and I’m now locked into leases until next November.

I strongly recommend not doing more than a 1 year lease.