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What term lease is best to offer my tenant?
There are a few things to consider when you’re establishing the proper term of lease for your tenant, whether it’s for a new tenant you’re leasing to, or even with lease renewals and renewing an existing lease. Some of these things to consider are what your goals are, how long do you want to have this property as a rental. If you wanna have it as a long term investment, five, ten years, you may wanna consider having as long of a term as you possibly can so you can avoid vacancy and make sure that you’ve got a solid plan laid out with less volatility. Second one is do you need flexibility? If you need to be able to move back into the property or need to be able to sell it at any time, you may wanna consider a shorter-term lease or possibly a month-to-month lease to avoid being stuck in a position that you can’t get out of. What type of property is it? Is it multi-family where most tenants or a lot of tenants are looking for shorter-term leases?
It may be a stepping stone for them, so to speak, or a single-family home where they’re wanting to get rooted into a community and have their children in the school system or meeting neighbors and not wanting to move after six, nine, 12 months. They may wanna have a longer term. What is the target tenant looking for? Is the tenant that you’re after, are they typically looking for a longer term? Again, going back to the type of property with a single family or multi-family in the shorter term. What are they looking for, because you don’t wanna narrow your target market down to a select few that can say “Do a three-month lease” or they need to move out in four, five, six months. It’s gonna be important with your investing strategy to try to open it up as best as you can while also protecting your interests. And lastly, the time of year. We want to lease it and have those leases expire during the peak months. We want to avoid, in a colder climate, say November, October through February.
We wanna have it expire during the warmer months, and then also understanding by talking to property management companies, even real estate agents what months of the year are best in optimal leasing months, and you’ll begin to get a good idea when people are going back into school, when people are typically getting out of their contracts so we have a broader market. So these are some of the things to consider when leasing a property. What are your goals? What are the things that you’re looking for, what is the tenant looking for, what type of property, time of year, and making sure that you’re aligning your lease agreements up with these items will be important for you. If you have any questions with this as you’re making this decision, feel free to reach out to us. We’re happy to help out exploring your situation a little bit more and helping to answer your questions.