Leasing out a property in Jan

[FATEMA BASRAI]

[Landlord-TX] renewal lease help

Hoping to get your professional opinion.

My awesome tenants who I have had zero issues over the last two years are asking for a 3 month, 6 month or month to month lease while they look for houses to buy. They both are teachers.

Their lease is up on July 1.

The house is in Near southside/downtown area in and the location of the property has attracted young professionals esp teachers. I’m not sure what to do as summer is the best month for people moving esp teachers but I would like to be helpful to my tenants if possible.

I def don't want to do month to month.. I was also thinking Jan 1 as a move out could work but again that would mean less tenants looking.

A few notes:

I am a long distance landlord so month to month really wouldn’t work. This couple were my first renters and they were just great. The house is not in a popular school district and is small 2 bedroom so when I first advertised it, only young couples or roommates working in the downtown area applied. So perhaps a January moveout is okay if its not tied to people looking to rent before the school year?

I’m torn! A part of me would like to have them renew for 6 months and get 6 more months of stability and then hope and screen for another solid tenant in Jan. A pro for that option is that I can raise the rent by another $100 or so in Jan and probably even now since the lease duration is shorter. 

Another part of me wants them to move out by July 1 so I can advertise to the same teacher network that I used to find these two tenants. I will also raise the rent now.

What lease term would you suggest for my tenants?

Would I have a hard time finding a tenant in Jan?

If I do advertise in Jan, can I offer a 6 month lease and then move to 1 year in July to stagger during the busy season? If so, how do I incentivize tenants to sign for 6 months and then resign for a year? Or is 18 months better and if so, how would I incentivize that?

Looking forward to your insight.

[David K.]

Month to month is your best option. Charge a 10% rent premium to be month to month after their lease expires and REQUIRE a full 60-days notice of departure. 

You're correct, being vacant in January is not ideal...alternatively in this market, we noticed very little downturn in January in Atlanta. At least I didn't. Not ideal, does not mean a death sentence.

Give them their flexibility option, while protecting yourself and your interests. 

[FATEMA BASRAI]

Thank you, David!

Quote from @David K.:

Month to month is your best option. Charge a 10% rent premium to be month to month after their lease expires and REQUIRE a full 60-days notice of departure. 

You're correct, being vacant in January is not ideal...alternatively in this market, we noticed very little downturn in January in Atlanta. At least I didn't. Not ideal, does not mean a death sentence.

Give them their flexibility option, while protecting yourself and your interests.