Lease renewal time for tenant

[Shahrzad Amin]

Hello BP community!

I am a rookie landlord, and my tenant's yearly lease is up in a couple of months. They are requesting to go month to month at the end of the lease term, I am okay with allowing them to do so with a slight increase in the monthly rent (My current lease does have an automatic renewal clause that would be month to month if no termination notice is received by end of the lease term, I just need an addendum to increase the rent amount). My current lease contract was drawn up by my realtor and they did that as a favor to me. I have found addendum templates online that I could use to extend the lease month to month, but I would feel more comfortable if someone with a legal background put the contract together for me. I don't necessarily need a full time property manager, as I have been able to handle my tenant's requests by myself so far. Should I hire one time legal help just for the paperwork? if so, are there any recommendations? 

[Michael Smythe]

@Shahrzad Amin as already stated, don't fret it. If current lease auto-converts to MTM, just do an addendum for increase.

RECOMMEND you Google for Texas leases, many PMCs share them online, and copy & paste to create one YOU like & fully understand. THEN have an attorney review & approve:)
--- Many PMCs have a bunch of addendums which they use 100% of the time. So, why is it an addendum? Just incorporate as standard part of the lease!
--- Even if only use it 65% of the time, you can incorporate as standard part of lease with a checkbox to activated it:)

We do NOT recommend a small increase for MTM lease! 
--- Ours is a 10% increase to go MTM, OVER market rent!

Here's one way to approach tenant about increasing the rent:

We’ve found a great way to raise rent is:

• Determine market rent
• Share the proof with the tenant (they can see it on Zillow anyways)
• Tell the tenant, given your rent is $x and market rent is $y, what do you think if a fair increase?
• Often, they may volunteer a higher amount than you were hoping for.
• Those that respond “$0” or something ridiculous, you can request income documentation from them to justify.
• Don’t be afraid to share with them how much your property taxes & Insurance increased and that YOU cannot afford to absorb them.

ALWAYS get an increase or something of value annually when rents are increasing or tenants will start thinking they should never have an increase, making future increases that much more difficult to negotiate.