13-month leases (by Angela Creais [OR]) May 18, 2022 2:03 PM
13-month leases (by Jason [VA]) May 18, 2022 2:09 PM
13-month leases (by myob [GA]) May 18, 2022 3:01 PM
13-month leases (by LordZen [MA]) May 18, 2022 3:55 PM
13-month leases (by Robert J [CA]) May 18, 2022 4:21 PM
13-month leases (by #22 [MO]) May 18, 2022 10:18 PM
13-month leases (by BRAD 20,000 [IN]) May 19, 2022 12:13 AM
13-month leases (by S i d [MO]) May 19, 2022 10:53 AM
13-month leases (by Phil [OR]) May 19, 2022 2:33 PM
13-month leases (by don [PA]) May 24, 2022 6:19 PM
13-month leases (by Angela Creais [OR]) Posted on: May 18, 2022 2:03 PM Message:
Hi, We're thinking of offering 13-month leases with one of the leases rent free. What are the advantages/disadvantages of this? Thanks!
--50.246.xxx.xx |
13-month leases (by Jason [VA]) Posted on: May 18, 2022 2:09 PM Message:
It’s one more month that you can’t raise the rent. The market is nuts right now, why would you even have to offer “specials”? --50.202.xxx.xx |
13-month leases (by myob [GA]) Posted on: May 18, 2022 3:01 PM Message:
we state "one year minimum" on the lease papers. This way if we need 14 or 20 months (whatever) we're not locked in.
We do this so we can adjust our rent lease calander. Who needs 10 rentals coming due in July? or Christmas?
Has not failed us yet. --99.103.xxx.xxx |
13-month leases (by LordZen [MA]) Posted on: May 18, 2022 3:55 PM Message:
Angela 1st welcome to the forum, if that is your real name, we recommend you not to use your full name... And you might have a reason of why to offer a 13 month lease, do you care to explain why? --98.216.xx.xxx |
13-month leases (by Robert J [CA]) Posted on: May 18, 2022 4:21 PM Message:
Years ago rents were climbing thru the roof. In a friends apartment house rents hit $2,200 per month for a 2 bedroom unit. Then the prices started to decline because of a recession. The new rents fell to $2,000 per month. If the owner asked only $2,000 a month for a unit that had new paint, new vinyl flooring and appliances, THEN THE OLDER TENANTS WOULD BE MAD THEY WERE PAYINT $200 A MONHT MORE for a "tired" unit in need of a face lift.
That's tenant living there from 5 to 15 years and paying $2,200, when new tenants were going to pay less, only $2,000 a month. So the owner couldn't drop the price and two units were empty for more than 6 months.
The owner left for a vacation with his family and he left me in charge. When he returned I had rented one unit with a strange rent. The tenant was paying the $2,200 rent, but if he paid 12 months on time, no late post marked rental payment, then the 13th month is free. AND if 1 rental payment was late so much as 1 day, then the clock would start over until 12 months in a row got paid on time to receive a 13th month free.
The math meant the tenant get a break making his average rent over 13 months $2,031 per month. And if an older tenant said, why is the new tenant paying less? You could how them any of the new tenants check for $2,200....
My friend refused to pay me a commission for this deal. Then he turned around and rented the second vacant unit using this same method.
So when the Code Enforcement did their mandatory inspections and he needed my help, I told him to take a hike. The paid me half of my commission and I never worked for him again. I'm a contractor with 6 trade licenses and many accreditations in other related fields. And I own a 4 plex on that block. He had to take off of work to meet all of his handymen/contractors to deal the management and repairs. Having a local contractor that was on the block every week had little value until he doubled crossed me and lost my services. --47.155.xx.xxx |
13-month leases (by #22 [MO]) Posted on: May 18, 2022 10:18 PM Message:
One month free? No way. We do 13-24 month leases all day. --23.126.xx.xxx |
13-month leases (by BRAD 20,000 [IN]) Posted on: May 19, 2022 12:13 AM Message:
Angela,
Not sure I understand your question.
My lease is clear: 12 full calendar months. The lease anniversary date is listed on the lease.
If I sign the lease on Jan 15, the lease anniversary is written as “Last day of Feb”.
My bookkeeper informed that’s actually 13 months, not 12. Oops! But people don’t mind.
Also, if they want to leave earlier than the date written on the lease they pay the Early Lease Termination Fee (a fee calculated at 2 times the rent)
We get about one ELT fee a month.
Turnover is the LL’s enemy.
If I push 12 turnovers to the 13th month it’s as if I got an extra YEAR of rent without the hassles of turnovers.
For me, putting off a turnover is more important than the few bucks lost by delaying a rent increase by one month.
If you mean giving a free 13th month we don’t. Not needed in this market. Apt complexes do it as a gimmick to fill apts.
I have heard the comment the res might be a deal ShoppeW and will move across the street to get THAT apt’s deal.
Don’t operate out of fear - be BOLD!
BRAD --73.103.xx.xx |
13-month leases (by S i d [MO]) Posted on: May 19, 2022 10:53 AM Message:
As others have mentioned, there's no reason in most markets right now to give away a free month's rent. Maybe your market is different, but around here I get re-rented in less than a week at 10-15% higher than the last tenant, easily.
I'm in this biz to make money, not give it away. Share with us why you feel it is necessary to give away promotions.
--184.4.xx.xx |
13-month leases (by Phil [OR]) Posted on: May 19, 2022 2:33 PM Message:
Bad idea. Very bad. Reasons; 1 Oregon new laws prohibit no cause eviction if tenant is in for over a year. Our lease now running one or two days less than a year. If they are good tenants, offer a renewal. 2 no problem finding tenants..a little harder finding good ones, but still not hard. 3 why give away a month of income? --97.115.xxx.xx |
13-month leases (by don [PA]) Posted on: May 24, 2022 6:19 PM Message:
Phil--Interesting---Philly has just cause eviction law only for leases that are less than a year. --68.84.xxx.xx |
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