Re: To Renew or Not to Renew (lease) - Posted by Beachbum
Posted by Beachbum on July 30, 2010 at 22:58:38:
Wow…sounds like the tenant has you well trained!
Without knowing your specific market, or the property
in question, I can only say that I would never re up a
tenant like that. Once they passed the 60 day notice
period without committing to renewal, I would be
sending them a reminder that failure to vacate by the
end date makes them a hold-over tenant, subject to
penalty as your local statutes state (often double the
If you insist on negotiating, remember it is a TWO WAY
street…he wants something, what’s he giving you?
Typically I charge a higher rate for month to month or
short term renewals than I do for a six month or year
term, when it is for the TENANT’s convenience. You are
an investor- you want a stable, long term cash flow.
Time spent renegotiating and re-writing rental
agreements is non productive time.
As to repairs, is the house that old that stuff is
falling apart in a year? Or is the tenant just careless
and/or has friends that bust stuff up? A leaking faucet
is one thing, but repainting, new flooring, or whatever
else is on his wish list is bogus. It was rented as is,
right? You maintain it in that condition…if you make
improvements, the rent should go up accordingly.
I have been a property manager for 15 years, and paying
anyone a month’s rent as commission (residential) is
robbery, unless you have really researched PM charges
for your specific locale.
Bottom line…assuming the property/location is
reasonable, GOOD tenants are far more plentiful than
BAD ones. I move out bad ones at the earliest
opportunity, and advise incoming tenants exactly what
is expected and what happens when I am disappointed.
Then I follow through regardless of any song/dance on
Life is too short!