Tiered rent increases built into the lease

[Beth L.]

Hi All!

I was wondering what your thoughts are on this.

I have a possible tenant who is currently going to nursing school and graduates in May. She is carefully watching her finances and thinks that the rental rate that I am asking ($1175) is a little too high for her right now. Since it is cold and winter is approaching, the tenant pool is really slim. I was already considering some kind of incentive, like offering $1150 if she signs an 18 month lease so that the lease ends in the summer.

I know that she wants to be closer to $1000 so I was thinking that perhaps I could build into the lease that the first six months the rent will be $1000, second six months at $1100, and last six months at $1150. This way her rent will increase when she finds a job after she graduates, I get a tenant in there really soon, and I get a longer term tenant.

I compared this scenario with waiting and perhaps finally renting the unit in March at asking price. I would be making less money if I waited.

Are there any cons to this scenario that I am missing?

Thanks guys!!!