Lease renewal terms

[Laith S.]

Hi everybody,

I have a question about extending a house lease. Usually the tenants extends the lease for a year but this year they are asking to extend the lease for 6 months because they might buy a house. They gave me another option which extending for a year but they can inform me 3 months earlier.

Are there any disadvantage for doing this? Should I insist on a one year term?

Thanks so much,

LS

[Joe Splitrock]

Originally posted by @Laith S.:

Hi everybody,

I have a question about extending a house lease. Usually the tenants extends the lease for a year but this year they are asking to extend the lease for 6 months because they might buy a house. They gave me another option which extending for a year but they can inform me 3 months earlier.

Are there any disadvantage for doing this? Should I insist on a one year term?

Thanks so much,

LS

 A tenant should not be giving you lease extension options. We give three options:

1. Extend for a year at minimally increased rate.

2. Switch to month to month with $50 adder over yearly rate.

3. Give notice and move out.

Also worth noting our standard notice requirement is 60 days. My advice is do not let the tenant dictate the terms. They are going to move regardless of what you do, so my advice is increase their rent and put them on a monthly basis.