Short vs. long leases

[Paul Z.]

Hi fellow Landlords.

What are the pros and cons of longer lease terms (e.g. 3-5 years) vs. shorter ones (e.g. 1 year)?

I live in Ontario Canada where a lease becomes month-to-month at the end of the term.

Cheers,

Paul

[Christine Kankowski]

I prefer the 1 year model for a few reasons:  If a tenant is a pain, i want to reserve the right to non renew.  I also want to be able to increase the rent, if the market warrants it.  If someone has a super long lease, chances are they will need to break it at some point, so have a clear lease-break policy in place (even with shorter leases)

i do one year leases.  When the lease is up, the tenant can chose to stay on month to month at an increased rate, or sign another year lease at the rate of my choosing. Depending on the market, the rent could stay the same for several years, or it could increase a small amount each year.