Long / Longer term lease for tenants / rate increases

[Kevin Turk]

Hi everyone, thank you for taking the time to read my post and providing your recommendations.

I am currently house hacking in Philadelphia and have a beautiful 2 bed 2.5 bath that I'm renting out. The tenants are paying $2,200/mo ($2,175 rent + $25 pet fee) and they purchased a home of their own, moving out either 5/1 or 5/15, they're ok with either.

I listed the property on Zillow at $2,350/mo and it received a ton of interest (almost makes me think I may have listed too low, however the best comp has been listed for 60 days at the same price), just days later I showed it to 5 couples. They're all pre qualified and it doesn't seem like there are any red flags. I want to detail some of the options and hear about your experiences and suggestions for a strategy moving forward. Thank you!

*I don't really mind tenants having a dog, the last two have and it's been fine, doesn't hurt getting the extra $25/mo

Couple 1 - would like 12 months and hope to extend if they like it. Have a dog. They've been very attentive.

Couple 2 - looking to move somewhere for 3-4 years and enquired about some sort of price lock or preferred pricing since they would like to live there longer. No pets. Wondering what kind of strategy would work here, I don't want to not increase the rent at all annually - based on the amount of interest I've received at this price.

Couple 3 - looking for 24-28 months, with a potential hard stop at 28 months. This leaves me looking for tenants likely in September or October in a couple years which is less desirable than sticking with May start dates, however the last two tenants moved in in October and February so the interest in the home is usually pretty high.

The others I've somewhat ruled out but any and all input is very much appreciated, I can answer any questions too. Thank you!

[Mike McCarthy]

@Kevin Turk whomever you choose, I’d give them a 12 month lease. Write in that if no changes are made, lease turns to a mtm (typical). I would share with them that your policy is to increase rents 40-50/yr. explain taxes go up, maintenance goes up, etc.

this doesn’t tie you to anything, but gives them an idea of what to expect.

If they are really good tenants, offer them a renewal for $30/mo. If they aren’t, costs went up and will be $100/mo more :)