We rent out the condo that we own. The current lease is up August 1. The tenants would like to extend through October 31. Our property manager mentioned that it is harder to rent when you're off cycle from the summer but we'd also have plenty of time to get tenants. I'm guessing it won't be that hard to rent in October. It's a hot neighborhood in a large urban city and it's not cyclical as say a college town. Would you try to find a new tenant for August 1 or wait for November 1? And would you raise the rent the last couple of months and by how much? They've been good tenants but like I said it's a hot neighborhood. And I know the reason they're trying to extend through October is because 1 is buying a condo so I'm thinking they'd likely pay a pretty big rent increase so as not to move 2x in the span of 3 months.
It's also pretty challenging to find tenants in the winter. 10/1 might not be terrible for Boston but December through March would be damn near impossible.
Post by FrozenSunshine on Jul 7, 2015 0:22:43 GMT -5
We ended up buying in Chicago almost immediately after moving out here because rentals were being snapped up instantly (we bought in October.) I pretty much think as long is it's not December/January you'll have no problem renting in a good/decent area. That said, I think I'd up the rent for the previous tenants for those last few months to cover a month or so of loss.
Depends on the city. In New York, I certainly wouldn't worry about it. The only thing I'd be concerned about is if you need to do painting/cleaning/renovations between tenants, how long will the unit sit empty? I wouldn't want to risk getting into December.
Could you meet them halfway and extend through September 30? Or even October 15 so you'll be ready for a new tenant to move in on November 1?
Post by vanillacourage on Jul 7, 2015 7:42:49 GMT -5
I'd ask your property manager if they have actual data on how long rentals sit on the market in October vs. August. I don't think I'd be inclined to do this (even for good tenants who were paying extra) unless there really is no difference. I'd fear a situation where they move out, you find there is some repainting or other work to be done, and all of a sudden it's almost Thanksgiving before the place is available again.
I'd ask your property manager if they have actual data on how long rentals sit on the market in October vs. August. I don't think I'd be inclined to do this (even for good tenants who were paying extra) unless there really is no difference. I'd fear a situation where they move out, you find there is some repainting or other work to be done, and all of a sudden it's almost Thanksgiving before the place is available again.
Which then puts cheezer into the holiday season which has got to be shit for finding tenants everywhere.
TBH that is why I would be super hesitant about November 1, because if something gets delayed (as it inevitably will), all of a sudden you now have a vacant property for three months through the winter.
Post by vanillacourage on Jul 7, 2015 9:15:49 GMT -5
cheezer, as a compromise I would feel comfortable signing them to a six-month lease, and writing into the contract that you will make a good-faith effort to re-rent as soon as they move out. Once you have a new tenant in, they're off the hook. It would likely be less expensive and easier for them than moving twice, even if they pay rent for an empty place for a few weeks, plus it takes off the pressure on their own house hunt.
I think this really depends on your area. Our tenants signed the lease Oct 1st and there lease is up Sept 30th. We didn't have any troubles finding our tenants. We've even rented out our place in December here so I would be ok with doing a three month lease. But if I was in a town that primarily rented out for sept 1st then I would not do it.
I think this really depends on your area. Our tenants signed the lease Oct 1st and there lease is up Sept 30th. We didn't have any troubles finding our tenants. We've even rented out our place in December here so I would be ok with doing a three month lease. But if I was in a town that primarily rented out for sept 1st then I would not do it.
Dumb question, but wouldn't that increase her odds of finding a tenant? If most rentals are on a Sept 1 cycle, having a rental that doesn't adhere to that cycle might bring in more applications for those that missed the Sept 1 cutoff.
-coming from someone that has a lease that expires Feb 1. Apparently it's not a big deal here, even though we have snowy/cold winters here.
I think this really depends on your area. Our tenants signed the lease Oct 1st and there lease is up Sept 30th. We didn't have any troubles finding our tenants. We've even rented out our place in December here so I would be ok with doing a three month lease. But if I was in a town that primarily rented out for sept 1st then I would not do it.
Dumb question, but wouldn't that increase her odds of finding a tenant? If most rentals are on a Sept 1 cycle, having a rental that doesn't adhere to that cycle might bring in more applications for those that missed the Sept 1 cutoff.
-coming from someone that has a lease that expires Feb 1. Apparently it's not a big deal here, even though we have snowy/cold winters here.
It also could cull out the applications that she does not want. I would think that it would eliminate the college students and those with kids. Depending upon where the unit is, and the size, being on something other than a 9/1 cycle could work to her benefit.
I think this really depends on your area. Our tenants signed the lease Oct 1st and there lease is up Sept 30th. We didn't have any troubles finding our tenants. We've even rented out our place in December here so I would be ok with doing a three month lease. But if I was in a town that primarily rented out for sept 1st then I would not do it.
Dumb question, but wouldn't that increase her odds of finding a tenant? If most rentals are on a Sept 1 cycle, having a rental that doesn't adhere to that cycle might bring in more applications for those that missed the Sept 1 cutoff.
-coming from someone that has a lease that expires Feb 1. Apparently it's not a big deal here, even though we have snowy/cold winters here.
That would depend on why the majority of the renters are there. College towns usually rent out in sept for the school year, so finding tenants other times can be hard.
I think this really depends on your area. Our tenants signed the lease Oct 1st and there lease is up Sept 30th. We didn't have any troubles finding our tenants. We've even rented out our place in December here so I would be ok with doing a three month lease. But if I was in a town that primarily rented out for sept 1st then I would not do it.
Dumb question, but wouldn't that increase her odds of finding a tenant? If most rentals are on a Sept 1 cycle, having a rental that doesn't adhere to that cycle might bring in more applications for those that missed the Sept 1 cutoff.
-coming from someone that has a lease that expires Feb 1. Apparently it's not a big deal here, even though we have snowy/cold winters here.
No, because all the tenants are also looking for 9/1 apartments. I promise you it makes sense in my area...I don't rent to college kids either and I can't think of anyone with a child that would want my 1 br/1 ba condo.
Here is an article that states 80% of apartments become available 9/1 in Boston - even for non-college neighborhoods and rentals.
Post by imojoebunny on Jul 7, 2015 16:47:34 GMT -5
Here, it doesn't seem to matter for our units. All are in hot areas, on the lower side for rents, and duplexes, which means a yard, but not as expensive as a similar sized single family. We also don't have very many families apply to rent from us, so not too many on the school schedule. There is a fair number of students, mostly grad/phd. but that is more year round, since people do abroad months, internships, and the like in grad school.
We had 6 sets of applications in the hour we had an open house for the last rental that was open. There is a good bit of new stuff nearby, but it is very expensive, so our places look like bargains.
I'm a real estate agent in an urban area (Chicago). I always have a much more difficult time renting places after Oct 1. Typically, I will end up having to lower the rent a bit if I need to get a place rented between October and March. I'm not sure where you are located, but I would trust your agent. I would tell your tenants that they need to be out by Sept 30 or stay until end of Feb.
I'm a real estate agent in an urban area (Chicago). I always have a much more difficult time renting places after Oct 1. Typically, I will end up having to lower the rent a bit if I need to get a place rented between October and March. I'm not sure where you are located, but I would trust your agent. I would tell your tenants that they need to be out by Sept 30 or stay until end of Feb.
Oh interesting! Our agent was saying it's more difficult but that we'll have a long lead time so it's no problem.
I'm a real estate agent in an urban area (Chicago). I always have a much more difficult time renting places after Oct 1. Typically, I will end up having to lower the rent a bit if I need to get a place rented between October and March. I'm not sure where you are located, but I would trust your agent. I would tell your tenants that they need to be out by Sept 30 or stay until end of Feb.
Oh interesting! Our agent was saying it's more difficult but that we'll have a long lead time so it's no problem.
I have not found that a long lead time really helps all that much. Most people don't start looking for a rental here until 6 weeks ahead of time. So even if you have a long time to find someone, it might not really help all that much. Are you in Chicago? If so, I would give them the choice I mentioned above--out by end of September or wait until end of February.
Oh interesting! Our agent was saying it's more difficult but that we'll have a long lead time so it's no problem.
In my experience long lead times are a bad thing. You'll get looky-loos who are still seeing what's out there and keeping their options open. More showings, hardly any applications. In my market people don't get serious until 4-6w out from when they want their lease to start.
It's a tough one... it'd be nice of you to let them stay, but it's business. I'd probably raise the rent pretty significantly (like 20-25%) and allow them to go month-to-month only to recoup any loss you'll have in waiting for a new tenant.
This is what I'd do. Raise the rent enough to cover the possibility of not securing a new tenant for a few months.