Tenants going M2M in February

[Aaron K.]

I have a renovated 3 bedroom, 1 bath home in Ferndale, Michigan. The market has increased by a lot over the last four years and my home is nicer than most rentals. I charge 1450 which is kind of low by $100 dollars, but it attracted good tenants.

Now my tenants want to go into a month to month. They have stayed one year. I bought two new appliances for their term and let them pick a new stove for almost a grand. I have also let them choose the option to paint.

I’m going to let them stay until May after their term expires in February. I’m trying to decide on turning it into an Airbnb or keep it a long term rental.

How much should I increase the rent?