Property Management Doesnt Offer Yearly Lease

[Moose]

So my one year lease is up on my rental property thast I have rented for 4 years. The property management has decided that the will not be offering another year lease and would prefer to stay month to month.

The answer from the management mentioned that it was just a subgroup of their whole rental property that they were not going to offer year leases on. I highly doubt its personal, but could it be because of the hopes of their management that rent prices will increase soon and dont want to get locked into the current rates? I dont want to offer details of the management company, but I can offer that the property is very close to the beach. Does anyone have any thoughts on why they would do this?

Oh and I’ve been reading piggington for 2 years now, but this is my first topic post. I have used the information gathered from this site and others to convince my parents to sell their home and retire in late 2007, and somehow they found a suc…. I mean a buyer willing to purchase it. Zillow suggest the price has dropped over a $100k since then and my parents are eternally greatful to be out of it. So thank you piggington community, you’ve been very helpful to my family.

[temeculaguy]

Love the lurker success stories, welcome aboard moose. There might be a less devious reason than potential rent increases. I have not read any analysis that forecasts serious rent increases in the next year so there may be another reason. Certain properties can atract difficult tenants (beaches, colleges and other areas with novice or yahoo renters) and it is more difficult to evict those in a 1 year lease for conduct issues. If renters seem to stay anyway and rentals don’t sit vacant the lease doesn’t protect the owner, the market protects the owner and the lease protects the renter.

Another theory could be a planned rennovation, contractors are desperate for work and offering great deals, it’s a good time to revamp an aging rental property. Month to month gives them the ability to toss out or move tennants between units during the rennovation if they do it in phases or segments with the renter having no recourse and then they can raise the rate on revamped units.

[temeculaguy]

Love the lurker success stories, welcome aboard moose. There might be a less devious reason than potential rent increases. I have not read any analysis that forecasts serious rent increases in the next year so there may be another reason. Certain properties can atract difficult tenants (beaches, colleges and other areas with novice or yahoo renters) and it is more difficult to evict those in a 1 year lease for conduct issues. If renters seem to stay anyway and rentals don’t sit vacant the lease doesn’t protect the owner, the market protects the owner and the lease protects the renter.

Another theory could be a planned rennovation, contractors are desperate for work and offering great deals, it’s a good time to revamp an aging rental property. Month to month gives them the ability to toss out or move tennants between units during the rennovation if they do it in phases or segments with the renter having no recourse and then they can raise the rate on revamped units.

[temeculaguy]

Love the lurker success stories, welcome aboard moose. There might be a less devious reason than potential rent increases. I have not read any analysis that forecasts serious rent increases in the next year so there may be another reason. Certain properties can atract difficult tenants (beaches, colleges and other areas with novice or yahoo renters) and it is more difficult to evict those in a 1 year lease for conduct issues. If renters seem to stay anyway and rentals don’t sit vacant the lease doesn’t protect the owner, the market protects the owner and the lease protects the renter.

Another theory could be a planned rennovation, contractors are desperate for work and offering great deals, it’s a good time to revamp an aging rental property. Month to month gives them the ability to toss out or move tennants between units during the rennovation if they do it in phases or segments with the renter having no recourse and then they can raise the rate on revamped units.

[temeculaguy]

Love the lurker success stories, welcome aboard moose. There might be a less devious reason than potential rent increases. I have not read any analysis that forecasts serious rent increases in the next year so there may be another reason. Certain properties can atract difficult tenants (beaches, colleges and other areas with novice or yahoo renters) and it is more difficult to evict those in a 1 year lease for conduct issues. If renters seem to stay anyway and rentals don’t sit vacant the lease doesn’t protect the owner, the market protects the owner and the lease protects the renter.

Another theory could be a planned rennovation, contractors are desperate for work and offering great deals, it’s a good time to revamp an aging rental property. Month to month gives them the ability to toss out or move tennants between units during the rennovation if they do it in phases or segments with the renter having no recourse and then they can raise the rate on revamped units.

[temeculaguy]

Love the lurker success stories, welcome aboard moose. There might be a less devious reason than potential rent increases. I have not read any analysis that forecasts serious rent increases in the next year so there may be another reason. Certain properties can atract difficult tenants (beaches, colleges and other areas with novice or yahoo renters) and it is more difficult to evict those in a 1 year lease for conduct issues. If renters seem to stay anyway and rentals don’t sit vacant the lease doesn’t protect the owner, the market protects the owner and the lease protects the renter.

Another theory could be a planned rennovation, contractors are desperate for work and offering great deals, it’s a good time to revamp an aging rental property. Month to month gives them the ability to toss out or move tennants between units during the rennovation if they do it in phases or segments with the renter having no recourse and then they can raise the rate on revamped units.

[urbanrealtor]

I have a possible reason that reflects my current cynicism with much of the managed rental pool in town. Your unit may be one the management company considers to be at high risk of foreclosure.

If the property gets repo’d, the tenant’s deposit (if held by the original landlord) is gone and the tenant may ask the management company to cover it. Also, the management fees may end up delinquent and unrecoverable.

I recently saw management company freeze a landlord’s account when the NOD showed up. They announced that they would be escrowing the deposit for return to the renter if the property was taken by the bank. This is not just altruism. Some of these situations end up in court.

[urbanrealtor]

I have a possible reason that reflects my current cynicism with much of the managed rental pool in town. Your unit may be one the management company considers to be at high risk of foreclosure.

If the property gets repo’d, the tenant’s deposit (if held by the original landlord) is gone and the tenant may ask the management company to cover it. Also, the management fees may end up delinquent and unrecoverable.

I recently saw management company freeze a landlord’s account when the NOD showed up. They announced that they would be escrowing the deposit for return to the renter if the property was taken by the bank. This is not just altruism. Some of these situations end up in court.

[urbanrealtor]

I have a possible reason that reflects my current cynicism with much of the managed rental pool in town. Your unit may be one the management company considers to be at high risk of foreclosure.

If the property gets repo’d, the tenant’s deposit (if held by the original landlord) is gone and the tenant may ask the management company to cover it. Also, the management fees may end up delinquent and unrecoverable.

I recently saw management company freeze a landlord’s account when the NOD showed up. They announced that they would be escrowing the deposit for return to the renter if the property was taken by the bank. This is not just altruism. Some of these situations end up in court.

[urbanrealtor]

I have a possible reason that reflects my current cynicism with much of the managed rental pool in town. Your unit may be one the management company considers to be at high risk of foreclosure.

If the property gets repo’d, the tenant’s deposit (if held by the original landlord) is gone and the tenant may ask the management company to cover it. Also, the management fees may end up delinquent and unrecoverable.

I recently saw management company freeze a landlord’s account when the NOD showed up. They announced that they would be escrowing the deposit for return to the renter if the property was taken by the bank. This is not just altruism. Some of these situations end up in court.

[urbanrealtor]

I have a possible reason that reflects my current cynicism with much of the managed rental pool in town. Your unit may be one the management company considers to be at high risk of foreclosure.

If the property gets repo’d, the tenant’s deposit (if held by the original landlord) is gone and the tenant may ask the management company to cover it. Also, the management fees may end up delinquent and unrecoverable.

I recently saw management company freeze a landlord’s account when the NOD showed up. They announced that they would be escrowing the deposit for return to the renter if the property was taken by the bank. This is not just altruism. Some of these situations end up in court.

[Moose]

Well thank you both for your reply. I finally got a response from the property management and they said that many of their tenants as of late were going to extreme measures to break leases. I dont know how extreme but I havent heard anyhting on the news, so it couldnt be that extreme. That being said why they wouldnt make this policy on a case by case basis depending on risk factors instead of a blanket policy is beyond me. The info provided regarding how the lease doesnt really protect the landlord in cases where the tenants pay rent on time and are pretty reliable does help explain it a little. I guess we are clearly in that category.

Oh and thanks for introducing me to the term lurker. I never heard that term before but now I can come clean and admit I am a lurker on hundreds if not thousands of websites. I usually prefer to let the experts and non-experts argue amongst themselves but maybe I will contribute more in the future.

[Moose]

Well thank you both for your reply. I finally got a response from the property management and they said that many of their tenants as of late were going to extreme measures to break leases. I dont know how extreme but I havent heard anyhting on the news, so it couldnt be that extreme. That being said why they wouldnt make this policy on a case by case basis depending on risk factors instead of a blanket policy is beyond me. The info provided regarding how the lease doesnt really protect the landlord in cases where the tenants pay rent on time and are pretty reliable does help explain it a little. I guess we are clearly in that category.

Oh and thanks for introducing me to the term lurker. I never heard that term before but now I can come clean and admit I am a lurker on hundreds if not thousands of websites. I usually prefer to let the experts and non-experts argue amongst themselves but maybe I will contribute more in the future.

[Moose]

Well thank you both for your reply. I finally got a response from the property management and they said that many of their tenants as of late were going to extreme measures to break leases. I dont know how extreme but I havent heard anyhting on the news, so it couldnt be that extreme. That being said why they wouldnt make this policy on a case by case basis depending on risk factors instead of a blanket policy is beyond me. The info provided regarding how the lease doesnt really protect the landlord in cases where the tenants pay rent on time and are pretty reliable does help explain it a little. I guess we are clearly in that category.

Oh and thanks for introducing me to the term lurker. I never heard that term before but now I can come clean and admit I am a lurker on hundreds if not thousands of websites. I usually prefer to let the experts and non-experts argue amongst themselves but maybe I will contribute more in the future.

[Moose]

Well thank you both for your reply. I finally got a response from the property management and they said that many of their tenants as of late were going to extreme measures to break leases. I dont know how extreme but I havent heard anyhting on the news, so it couldnt be that extreme. That being said why they wouldnt make this policy on a case by case basis depending on risk factors instead of a blanket policy is beyond me. The info provided regarding how the lease doesnt really protect the landlord in cases where the tenants pay rent on time and are pretty reliable does help explain it a little. I guess we are clearly in that category.

Oh and thanks for introducing me to the term lurker. I never heard that term before but now I can come clean and admit I am a lurker on hundreds if not thousands of websites. I usually prefer to let the experts and non-experts argue amongst themselves but maybe I will contribute more in the future.

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