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?

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.

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.

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.

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.

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.

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.

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.

"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.

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.