1 year lease vs. 3 month lease

[Kyle Knutson]

Can I offer a tenant two different pricing options, such as renting a unit for $1,300 a mo. for 1 year or $1,350 a mo. for 3 months?

Some additional details:

I recently purchased the property and intend on raising the rents to market value. The tenant's lease is set to expire at the end of February. I have already sent them a non-renewal letter. However, they have asked for 3 months additional time. I would be willing to have them stay for as long as they like, but I need to raise rents ASAP as I will be locked in for 3 years at the rate that I am at when I apply for a grant in the near future. The increase is significant ($300/mo.) because it is way under market value. 1,350 is the target rent, but I will allow them to stay long term for $1,300. Is it legal for me to offer the two options?

Thanks!