Lease Language - renewing after 15 month term?

Question

So I have a tenant who agreed to an initial 15 month lease term.  I did this because  of it starting in January and it being mutually beneficial for the tenant and myself.  When it automatically renews I would like it to be for 12 months.

The 15 month lease is from January 10, 2015 and ending March 31, 2016.

Below is the current language I have in the custom text section of the lease.  Anything else I can add or do differently?

After the initial Lease Agreement term ending March 31, 2016, the Lease Agreement will automatically renew for a 12 month term beginning April 1, 2016 and ending March 31, 2017.  Every Lease Agreement term following the initial term will automatically renew every 12 months.

George Paiva · Answer

For me it all depends on the property type and location.  At the very least a clause has to be in there to handle the lease once it expires.  Here are a few examples:

HOLD-OVER.  If you continue to occupy the unit with our consent after this lease ends, this lease will be on a monthly basis.  In that case, either you or we can send a notice to the other and cancel the lease at any time.  All the other terms of this lease will still apply.

HOLDING OVER  Any holding over after expiration hereof, with the consent of the Owner, shall be construed as a month to month tenancy in accordance with the terms hereof, as applicable. The terms and conditions of this lease will continue to apply.

Honestly haven't had to enforce the lease in the 5yrs I have been doing this.  Not even the 5 evictions I have gone through has the lease agreement been brought up.  I doubt the tenants ever read over the leases I have them sign every year.

Hannah Robie · Answer

I prefer my leases to go month to month unless they willingly sign another one year lease. I still include the wording "lease will automatically renew unless proper notice is given by either party before the start of the new lease"  (or something to that effect) even if it is included in another area of  the lease. I have found that some tenants don't always understand everything in the leases and I really try to make things as easy to understand as possible even if I have to repeat information.

Kyle M. · Answer

I misread your point about slugs.  Yes I agree with you that month to month is easier to get rid of bad tenants.

Kyle M. · Answer

1. If they want to go month to month I would create an addendum or new lease  at a premium for a few hundred more a month (if they were really that good).  There a lot of variables involved to give a cookie cutter answer.  Did they give me 60 days notice that they would like to go month to month? Do they agree to the premium? etc.

2. They are not slugs.  It's mutually beneficial to end lease at the end of March instead of January.  Higher rents and more applicants for me and a higher selection of rentals or homes if they want to buy.  They have their option to do whatever they like as long as there is proper notice.  I also have a break lease fee if they want out before the lease ends.

This is my first rental so I am just speculating.  I'm sure different things work different in different areas.  From my perspective locking them in for 12 months makes me more money by reducing the time I have spend re-renting the unit.  On top of that, I can control when the lease ends, not them.

Michael Noto · Answer

@Kyle M.  Let's say the tenant is a model one for the 15-month term & they come to you and express they would like to go month-to-month.  What would you do then?

Also, what about the flip side?  From the way I read the part of the lease quoted if your tenant is a slug and you want to get rid of them after the 15 month term it looks like this lease is already set up for them to be able to stay as the lease renews.  Am I missing anything?

It is for the 2 reasons outlined above that I always prefer to have the leases automatically go month-to-month after the initial lease term (this is implied in Connecticut), otherwise as a landlord you sort of paint yourself into a corner. no?