Offer month-to-month lease to good tenants?

[Sam German]

I have good tenants who pay on time every time. Lease ends late July, and they're asking about a 3 month extension or month-to-month. 

Pros:

• Slightly increased rent for the shorter term
• Retain tenants who pay on time

Cons:

• a 3 month lease would mean I'm searching for tenants in early November. The tenant pool shrinks in the fall/winter, so it may be harder to avoid vacancy.

The question is whether the con is really an issue worth considering. Has anyone had trouble renting out homes that have leases expire in the late fall/winter? Any thoughts?

[James Hamling]

@Sam German Listing in Oct/Nov will be very different then July/Aug. 

It's not just about the cold but more about school in session vs summer break. Many families don't want to do that move and disruption during school session. Tenant move-out end of July means you could be marketing it mid June, via a video tour and doing in person showings by July 1. July is the bulls-eye for tenant movement and leasing activity. 

It should be a non-issue that current tenants are doing what they are supposed to, because think about that, a tenant is SUPPOSED to pay on time, every time, right. When we go to a restaurant and order a burger, do we celebrate when they don't bring us fish?  

And listing for Aug 1 move-in is your best odd's to get another good performing quality tenant. 

On LTR I am looking for a 3-7yr performance, so for me, 3 months can never off-set the impact of lowered rents / lessor tenants on a multi-year basis. I do it honest, I tell such tenant I am not looking for or interested in 3 months or having to list and lease in winter market. That I'd be happy to do another year, but no thanks on 3 months. That's not mean, it's HONEST. 

Tenant is obviously looking out for their own best, maybe you should follow their example, do the same, and look out for yours. Decide what's "worth-it" for you, make a decision, move forward, own the results, learn from them and "keep-on keeping-on" right.