One Year or Multiple Year Lease?
Whether you are a landlord or a tenant, longer leases tend to be the preference. Both sides enjoy having a commitment for a longer period of time, unless there are circumstances where the tenant may be planning on a move sooner, or the landlord may be planning to sell their rental property in the near future. Today, I bring an alternative point of view to the length of an initial lease between landlord and tenant.
A one year commitment is a great place to start over a multiple year commitment. Here’s the logic. Do you really want to committed for a longer period of time if the initial period is not working out. Imagine being a tenant committed to a landlord that doesn’t fix items for longer than one year. For landlords, having a slow paying or difficult tenant that you are committed to for a longer period of time may not the dream you thought it would be.
Neither party is usually averse to the idea of renewing a lease if the relationship is going well. That also gives the landlord the opportunity to evaluate if a monthly rental increase is in line with market value. And let’s face it, while this may be something a tenant wants to fight happening, the cost of moving is always going to be more than the cost of a slight rental increase.
Just my two cents on the subject. Ultimately, whatever my clients (tenants or landlords) decide is up to them.
Chris Ann Cleland
VA License #0225089470
Long & Foster Real Estate
Call or Text: 703-402-0037
The opinions expressed in this blog are those of Chris Ann Cleland, not Long & Foster.