Reducing rent for tenant for a longer lease.

[Renee Z.]

Hi All, 

I'm sending out a lease renewal letter to my tenant soon. I'm considering reducing the rent in exchange for a longer lease. We have a really good tenant. The current contract is $1400/month for a one year lease

It is a one bedroom condo in DC suburbs near a metro station (only 1 stop away from DC). And $1400 a month is already considered a good deal in that area for a 1 bed. 

What do you think I should reduce the monthly rent to for a 2 year lease? 

Thanks a ton! 

[Lynn McGeein]

If we have a good tenant who has expressed interest in a longer-term lease, we will send a renewal letter that states, 2-year option, $1400;  1-year option, $1430.  That way, you're getting the rent you'd prefer for the 2-year, and if they only take the 1-year, you're getting more to accommodate a faster turnover.  I wouldn't drop it if it's already a good deal for your area.