Lease question (by Dee-Texas [TX]) May 10, 2022 7:25 PM|
Lease question (by Richard [MI]) May 10, 2022 7:40 PM
Lease question (by MikeA [TX]) May 10, 2022 8:06 PM
Lease question (by MikeA [TX]) May 10, 2022 8:13 PM
Lease question (by Dave [MO]) May 10, 2022 8:57 PM
Lease question (by small potatoes [NY]) May 10, 2022 9:03 PM
Lease question (by S i d [MO]) May 11, 2022 8:01 AM
Lease question (by Oregon Woodsmoke [ID]) May 11, 2022 10:25 AM
Lease question (by Moshe [CA]) May 11, 2022 12:13 PM
Lease question (by Dee-Texas [TX]) May 11, 2022 1:09 PM
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Lease question (by Dee-Texas [TX]) Posted on: May 10, 2022 7:25 PM
One year lease with a couple their young children and brother in law. I charged extra for total of the lease because of brother in law.
Lease is over in October 2022.
Sister in law is telling me brother in law is leaving in Aug because of his new lease somewhere else. So wants to know if their rent will go down when he leaves? Sounds like she assumes he can leave and his part of the lease will be automatically taken off of the monthly payment.
She said they plan to re-new their lease.
Would you go down on the lease to renew or stay the same? This family pays on time but is always wanting something extra…our rental market is pretty strong at this time. They live in one of our duplexes and for some reason in our area….apartments rent and single family but duplexes never rent as fast. I always dread having a duplex vacant.
What are your suggestions?
Thank you for your answers and experiences. --45.131.xxx.xx
Lease question (by Richard [MI]) Posted on: May 10, 2022 7:40 PM
If duplex's have a problem, why not sell the duplex and 1031 into 2 singles on land?
Here there is an area where an entire subdivision is R-2 zoned, so 2 units per lot. I look to get singles on a lot that are fixer uppers and then fix #1 and add a second one if practical or at least an ADU or "granny flat". If I can do it right, I get 4 paying tenants on a lot that used to have one. If there's a problem, just one tenant.
It might be a profitable idea to look at that zoning that has room and allows an extra unit. --24.180.xx.xx
Lease question (by MikeA [TX]) Posted on: May 10, 2022 8:06 PM
I don't know what the market is doing in your area but I've been raising rents 30% at turnovers and not having a bit of problems getting it.
Start by assessing the fair market rent in your area. If you haven't looked in a while you will probably be surprised. Then you can tell them how much more the rent will in October even without the BIL. Don't be afraid to raise the rents to near current rates. Not only is your competition doing it but your taxes, insurance, and repair costs have gone up 30% as well so you will be operating in the red in the not too distant future if you don't. --209.205.xxx.xx
Lease question (by MikeA [TX]) Posted on: May 10, 2022 8:13 PM
The lease is in effect until Oct so the rent won't go down, in fact BIL will still be on the lease whether he is living there or not.
I would tell them the only way out before October is to cancel the lease with an Early Termination Fee of 1.5X monthly rent but I wouldn't suggest it as the rent will be resetting to the current rates on the new lease which will be higher than what they pay now. --209.205.xxx.xx
Lease question (by Dave [MO]) Posted on: May 10, 2022 8:57 PM
BIL, is still in a contractional lease with you.
Is BIL added like a pet $50.00 more per month for BIL?
I wouldn’t release him from the lease and rent needs to be paid as agreed to in the contract till the end of October.
Then you are free to renew contract at whatever market rent is at that time.
Tenants are supposed to pay on time and take care of the property.
I would follow the contract and leave it at that. --162.249.xx.xxx
Lease question (by small potatoes [NY]) Posted on: May 10, 2022 9:03 PM
you should tell them what you plan to make the rent and then tell them if BIL moves back in it will be x+1.
I would start over w/ a new lease that does not have him on it.
You don't say how much you increased it because of BIL. Either way I wouldn't reset lower, you have to communicate that taxes and your expenses are up.
Also per recent posts on Jeffrey's technique offer them an upgrade they have been requesting and create a price point that pays for itself. --24.194.xxx.xx
Lease question (by S i d [MO]) Posted on: May 11, 2022 8:01 AM
The lease was for a year at the rate quoted and agreed upon in writing in the lease.
They want to pay less for him moving out. Okay, here's the Early Lease Termination Fee, and then you can resign with the parties that will remain.
I JUST did this this past week. Got a $1000 ETF from the one leaving and will have a new lease sign with other two tenants who are staying today. Combined they make 6x the monthly rent and have always paid on time. No worries.
They want the change...they pay for it.
Lease question (by Oregon Woodsmoke [ID]) Posted on: May 11, 2022 10:25 AM
Rent stays the same until renewal. At renewal, rent is increasing by $100 a month, but will reduce that by $20 a month if the BIL is no longer there.
No rent reduction, but a slightly smaller increase. --76.178.xxx.xxx
Lease question (by Moshe [CA]) Posted on: May 11, 2022 12:13 PM
"Would you go down on the lease to renew or stay the same? "
YES, since you charged extra for total of the lease because of brother in law.
Lease question (by Dee-Texas [TX]) Posted on: May 11, 2022 1:09 PM
THANK YOU TO ALL!
All good points and information.
The rent was increase by $100.00 a month since there were 3 adults (all on the lease). The total amount of the rent NOW with the BIL is a little under the rent in the area. If I take the rent down $100.00 with BIL off the rent this property will be under priced for the market at this time.
Thanks again to All! --45.131.xxx.xxx
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