Beware the overqualified tenants

[Nathan E.]

Well I just had another experience with leasing out a single family home. My tenants looked to be perfect. They are an older couple, both working age with no kids, good credit, and enough earnings that the rent as a percentage of income was in the teens. Looks perfect right?

Well yes and no. These tenants are responsible people meaning that the rent was always paid on time, the house was kept in good order, and generally I didn’t get a lot of hassle. The problem is that they didn’t need to be renting. Before the end of the lease, I got the call that they had an offer accepted on a house in the area and wanted to break the lease. We worked out a deal where they would pay for the month that they move out giving me some extra time to get new tenants.

While I still rate it as a good experience, this is just one more thing to think about when selecting tenants.

[Colleen F.]

I have a similar couple in one house but added a buyout clause for the lease thinking they might move early. The house is a country home and although both easily can afford it they had never lived in the country and never lived together. I am happy if they stay the year because even so they were better fit they the other candidates.   It is good you could get a solution with these tenants. 

I also had a couple who wanted a house but asked before they went looking what the lease situation would be.  I think tenants are going to leave when they are going to leave regardless of the lease.  The lease discourages moving without notice and encourages moving during your preferred time period. 

Hope you can find some good candidates now.