Lease renewal timing

[Matt W.]

I just rented my 3br/2ba house a few months ago; so far so good. I live in Wilmington NC and the rental market is much hotter in the summer. Unfortunately, my current 1 year lease started in December, so it will renew again in the winter.

Assuming the current tenants want to renew their lease and I want to keep them, I’m thinking of presenting them with 2 options. Currently rents at $1350.

Option A: only raise the rent @$40 but require them to sign an 18 month lease, making the lease expire in summer and putting me in a better position when it’s time to renew going forward.

Option B: raise the rent $80-100 but allow them to sign a 12 month lease.

FYI: they have 4 young kids and a dog and came from a much worse living situation. I’m hoping they will not want to move again. I don’t want to take advantage or turn the screws on them, but I have to maximize profits as well. They house cash flows well but I think the rent needs to go up a little next year.

Of course, if they end up being a pain I’ll have to part ways in December.

Thanks!

[Matt W.]

@Michael Peters

Thanks, I’ll try my best not to lose a good tenant over an extra $500 a year, it wouldn’t be with it if I had to be vacant for an extra month.