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sdsurfer.
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July 29, 2013 at 10:43 PM #20720July 30, 2013 at 7:15 AM #763872
jeff303
ParticipantI guess I’m missing something, but did you try asking them if they were interested in renewing for another year? If they’re not, then give them the written notice since it’s 30+ days before the end of the current term.
July 30, 2013 at 7:35 AM #763873SD Realtor
ParticipantIf you havent had any issues and you are happy with the tenants why don’t you send them another lease agreement for a 1 year term?
July 30, 2013 at 8:45 AM #763874paramount
ParticipantI asked my tenants about 2 weeks ago if they were considering renewing the lease, but never got a response or a reply.
July 30, 2013 at 9:39 AM #763877ParticipantGot it… well you can simply send them one, if they sign it great, if they don’t then you keep them month to month I guess. Good tenants are nice to have but ya don’t wanna scare them off.
July 31, 2013 at 2:25 PM #763920HLS
ParticipantI have had many month to month tenants in multiple properties over the last 30 years, most worked out very well.
A lease obligates you more than them. People break leases all the time, and it’s a real hassle to get a judgment and/or collect.
A lease is not a guarantee that a tenant will stay there.. It IS a guarantee that it’s a lot harder for a landlord to get rid of a crappy tenant when they are paying their rent.
If someone has a lease and wants to break it, do you really want them in your property as disgruntled occupants ?
Being a landlord comes with huge risks and obligations that most people seem unaware of, until something goes wrong.
If you feel better with a lease, you can raise the rent with 30 days notice, and offer a lower monthly rate, or keep it the same as now if they sign a lease.
I once had a month to month tenant stay for 13 years and the only reason she left was because I sold the house.
Month to month does have to be a bad thing.July 31, 2013 at 8:07 PM #763923EconProf
ParticipantMy policy has been to require a lease up front and then let it revert to month-t0-month thereafter. That way you have them for a set amount of time to cover your rent-up expense, and you both have the flexibility to terminate afterwards.
If you demand a new lease in order to stay, what if they were planning a move in 3 or 6 months and you are forcing them to move now instead? If they are good tenants, better for you to keep them on for a few months longer.July 31, 2013 at 9:52 PM #763924Hatfield
ParticipantWhen the lease expires, I offer my tenants the option of signing a new lease or reverting to month-to-month. Some tenants like the perceived security of a lease, other prefer the flexibility of going month to month. If they’re good tenants it makes no difference to me, and they seem to appreciate being given the opportunity to choose what option they want to take.
BTW, the law in California changed a few years ago: if the tenants have lived in the property for a year or longer, you must give them 60 days notice. It used to be 30 regardless of the length of the tenancy.
August 1, 2013 at 8:57 AM #763926(former)FormerSanDiegan
ParticipantI 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.).
August 1, 2013 at 12:56 PM #763927livinincali
Participant[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.
August 1, 2013 at 4:24 PM #763931Participant[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.
August 1, 2013 at 4:27 PM #763932ParticipantThe upside to a new tenant is repricing – hopefully up.
I also wonder if the lease does revert month-to-month, do all other terms of the lease remain in effect?
August 1, 2013 at 5:30 PM #763933Participant[quote=paramount]The upside to a new tenant is repricing – hopefully up.
I also wonder if the lease does revert month-to-month, do all other terms of the lease remain in effect?[/quote]
Generally, yes. But you’d have to read the lease to see.
August 3, 2013 at 12:33 AM #763953CA renter
Participant[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]
Agree with this. Leave everything as is. Go month-to-month or kindly offer them any duration lease they would prefer at no additional cost, and highly recommend that you do NOT increase the rent if they are good tenants.
For as long as they abide by the lease, pay the rent on time, and take decent care of the property, consider yourself a lucky landlord. My parents had multiple rentals in multiple states for decades and almost always had very positive experiences because they were not greedy or obnoxious landlords, offered somewhat below-market rents to exceptional tenants, and gave the tenants a lot of leeway WRT improving/personalizing the properties (with the understanding that they would return things to their former, or an improved, condition upon move-out), etc.
Do yourself a favor and treat your good tenants very, very well. You will not regret it.
August 5, 2013 at 1:29 PM #763989sdsurfer
ParticipantLot’s of good advice above! Personally, I would let them stay month to month and not say a thing since everything in the current lease remains and they sounds like good tenants. If you insist on a new 1 year lease then do not increase the rent too. I love the idea of my tenants staying in the property and paying my mortgage and in return I do not raise the rent on them and keep everything in good standing. I also like the aspect that if rents are going up around them they are even more likely to stay where they are and continue the win-win relationship. You can always update the property a bit when/if they move out and jack the rent a little at the same time if you choose to.
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