Six months versus a one year lease

[Ted Klein]

What kind of rental premiums are you charging When a tenant asked for a six-month lease rather than a full One year term that was presented.

[Ted Klein]

@Dan Perrott @Nathan Gesner

Thanks for the input. The tenant has been there for 11 years, so I will be surprised if he were to actually leave. I suspect this was his attempt at putting a doubt in my mind about his longevity, hoping that I would offer a lower rate for him to sign one year.

He is slightly under market rate, so I doubt that he would find something comparable for less. We shop the market and know that the only things cheaper are on the other side of the tracks and he doesn’t fit that profile. 

With the competitive market here in the Seattle area, the good places go quick and usually at a premium price.

I like the one year lease or the month-to-month with a 20% increase option. If he signs the year lease, I avoid the turnover this year and get my new rate, if he goes the m2m route, I will get a rate about 5% above market.

 I suspect that the 20% increase would be on top of the $75 increase I already gave at this years renewal option, is that correct?