[quote=livinincali][quote=FormerSanDiegan]I agree with Hatfield and HLS here.

Going month-to-month is in your favor.

However, if you really want them to choose a 12-month lease, then don;t ask them, just send them a notice of intent to increase the rent under month-to-month agreement and give them a form with a box to check to give them a choice between the increased month-to-month costs or a new 12-month lease at the same rent (or modest increase).

box 1 – Renew 12 month lease at $X (e.g. no increase in rent).

box 2 – continue month-to-month with $X increase (as of a date far enough in the future that you can give 30 days notice, so e.g. 45 dayd from when you send the letter.).[/quote]

If I received a form like this as a tenant it would probably piss me off a bit. I’d certainly go out and look to see if there might be something better out on the market. The thing about sending out a new 1 year lease is it’s going to make the tenant go look at what’s out there. If you’re at or above current market rates the tenant might decide to leave while if they are on month to month they might not even bother to look. Rents in general have been rising but you never know what’s going on it your particular submarket until you look.[/quote]

If you are at or above market rates, I wouldn’t send the tenant anything. SO I agree with that remark.

I also would not make the new month-to-month rate higher than current market (unless you wanted the tenant to move out for some reason).

The OP wants the tenant to sign a new 12-month lease, this is a way to make that happen (or get a new tenant).

Personally, for my rentals I’ve always just allowed the tenant to continue on the month-to-month. I’ve only raised the rent once after a couple of years of tenancy in one case. In that case I was considerably under market and didn’t care if the tenant had moved out.