Author Topic: Tenant needs time to decide if they want to renew  (Read 4418 times)

Bearded Man

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Tenant needs time to decide if they want to renew
« on: June 07, 2015, 01:20:17 PM »
A month to be exact, at least according to their response to my email offering to extend their lease for a 3rd year at the same rate as when they first moved in 2 years ago. She said that they will probably renew, as they like living there, but are considering buying or renting a relatives house pending the outcome of a legal case and should know by July (when their lease is up).

Assuming they actually let me know by July, I don't think it's an issue, as long as they give the required notice before moving out at the END of JULY. But if it drags on beyond that, it could leave me finding a tenant in the fall rather than the summer. Not the end of the world, but not ideal either.

I need time to turn the house for the next tenant too. As such, should I be laid back or tell the tenant that I need to know no later than the end of July whether they want to renew their lease or not? Put them on a month to month at the same or higher rate in the interim? (they are good tenants, which is why I have not raised the rent, plus the house is paid off so it's mostly profit anyways).

I'm pretty sure they will renew, and my goal is to get them to renew. Otherwise I might just sell the house (nearly tripled in value) and buy another in the same area but a better location, this way it could be a "guaranteed" retirement house. (Yes, other houses have gone up as well, but there are new deals for equivalent houses in better locations [not such a busy street]).

Dicey

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Re: Tenant needs time to decide if they want to renew
« Reply #1 on: June 07, 2015, 01:28:03 PM »
Sorry,[ Mod Note: name calling removed] is the first word that popped into my mind. You have good tenants and you're worried that they want to make a thoughtful decision? Egads! What's wrong with letting good tenants go month-to-month?

It sounds like you are putting the onus of your decision making on them. If they stay I'll do this, if they don't I'll do that..

Why not keep this property and buy the other house too? Sounds like you have the means to do both.
« Last Edit: June 08, 2015, 06:46:26 PM by swick »

Bearded Man

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Re: Tenant needs time to decide if they want to renew
« Reply #2 on: June 07, 2015, 01:37:14 PM »
Sorry,[ Mod Note: name calling removed] is the first word that popped into my mind. You have good tenants and you're worried that they want to make a thoughtful decision? Egads! What's wrong with letting good tenants go month-to-month?

It sounds like you are putting the onus of your decision making on them. If they stay I'll do this, if they don't I'll do that..

Why not keep this property and buy the other house too? Sounds like you have the means to do both.

Excuse you?? I'm not in the business of letting my tenants come and go as they please and dictate how I manage my property. I'm running a business here, not a charity for people who need flexible life terms at my expense. And in case you hadn't noticed, I DID post that option above, though I'm not keen on it as it costs me $. Again, I'm not running a charity here. If that makes me an [ Mod Note: name calling removed] as you so eloquently put it, than I guess you are entitled to your OPINION.
« Last Edit: June 08, 2015, 06:47:20 PM by swick »

waltworks

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Re: Tenant needs time to decide if they want to renew
« Reply #3 on: June 07, 2015, 01:52:15 PM »
Why are you posting this now? You can make a decision in July.

-W

iamlindoro

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Re: Tenant needs time to decide if they want to renew
« Reply #4 on: June 07, 2015, 05:28:46 PM »
I am not sure I have the details right, but it sounds like their lease ends on July first.  Thus, it is technically already too late for them to give you 30 days notice if they plan not to renew.

I would personally offer them a one-time, one-month extension, highlighting the fact that you do not offer month to month leases but are willing to make a one-time exception in order to give them the time they need to make their decision. Mention that this offer is in recognition of their history as excellent tenants.  Let them know that if they would like to stay, you will need to have a one year renewal signed by July 1st, and if not, you will assume that they have decided to move on, and that you wish them the best regardless.  Drop a 30 day vacate notice by on July 1st, and start looking to place tenants.  If they decide to sign the renewal during July while you're advertising the place, and you want to keep them, great.  If not, you can aim to have someone placed early in August.

Seeking the Brass Ring

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Re: Tenant needs time to decide if they want to renew
« Reply #5 on: June 08, 2015, 06:34:01 AM »
Start showing the place until they sign a lease.  When new people start coming through it should put enough pressure on them to shit or get off the pot.

BlueHouse

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Re: Tenant needs time to decide if they want to renew
« Reply #6 on: June 08, 2015, 02:47:07 PM »
I would let them go month-to-month, unless you are in a location where the timing really does matter (like a college town). 
Are there other factors that I may not have considered that make a 30-day delay unattractive?

My only tenant signed a one-year lease and has now been on month-to-month with no price increase for 2.5 years.  He's a gem and I figure it's worth it to me to keep him.  Of course, I suck at landlording, and I lose money every month.  If he decides to move out, I'll sell the place, but if he stays on, I'll keep it until the metro is finished in 2018. 


Dicey

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Re: Tenant needs time to decide if they want to renew
« Reply #7 on: June 08, 2015, 03:41:18 PM »
I'm running a business here, not a charity for people who need flexible life terms at my expense.
Are they asking for free rent? Bouncing rent checks? Destroying your property? You are running a business where your product is housing for human beings, not a public storage or warehouse operation. My instinctive opinion is reinforced by your callous response. Sorry (again) you don't like it, and I'm even sorrier that you created such an impression. Landlords frequently get cast in a bad light and your OP and follow-up are two examples why.

fishnfool

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Re: Tenant needs time to decide if they want to renew
« Reply #8 on: June 08, 2015, 05:20:21 PM »
Sorry, "asshole" is the first word that popped into my mind. You have good tenants and you're worried that they want to make a thoughtful decision? Egads! What's wrong with letting good tenants go month-to-month?

It sounds like you are putting the onus of your decision making on them. If they stay I'll do this, if they don't I'll do that..

Why not keep this property and buy the other house too? Sounds like you have the means to do both.

Sometimes being a landlord can cause one to get a little anxious and I think the OP was just expressing his thoughts. Not sure he deserved to be called an A-hole. He provided housing to these fine tenants and kept the rent low. He didn't say there was anything wrong with going month to month either., Your comment was rude IMO!

Neustache

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Re: Tenant needs time to decide if they want to renew
« Reply #9 on: June 08, 2015, 05:42:25 PM »
Whoa...kind of out of line calling someone a name based on the info given.  I don't know exactly what rubbed you the wrong way in the post, but I get where the OP is coming from...maybe I'm an a-hole, too, though. 

If the tenants were worried about losing the place, they should have made the thoughtful decision in May, not given the OP less than 30 days notice that they might want to move.  I'd give them 'til the end of July to give you a commitment if you are at worried about filling the place should they move in late summer.

Bearded Man

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Re: Tenant needs time to decide if they want to renew
« Reply #10 on: June 08, 2015, 06:40:02 PM »
I'm running a business here, not a charity for people who need flexible life terms at my expense.
Are they asking for free rent? Bouncing rent checks? Destroying your property? You are running a business where your product is housing for human beings, not a public storage or warehouse operation. My instinctive opinion is reinforced by your callous response. Sorry (again) you don't like it, and I'm even sorrier that you created such an impression. Landlords frequently get cast in a bad light and your OP and follow-up are two examples why.

You must have a hard time. I clearly posted the month to month option in my OP and your response was to call me an asshole, demand a month to month option and you call ME rude?

Then to top it off, you are taken by surprise when I excuse you for your callous name calling and yet even though I never insulted you in response, you say I'm the bad guy? You're really something. Did you happen to notice that 2 other people in this thread agreed that your post was way out of line?

Perhaps you should look in the mirror when people respond negatively to your unwarranted and unfounded insults. At least I didn't call you a name even though you MORE THAN deserve to be called several at this point, I merely posted that I'm not running a charity here where people can come and go as they please.

If that bothers you, hit the back button, but keep your insults to yourself. Instead you'll just embarrass yourself even more. Welcome to the ignore list. You're not even worth my time.



« Last Edit: June 08, 2015, 06:49:12 PM by Bearded Man »

swick

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Re: Tenant needs time to decide if they want to renew
« Reply #11 on: June 08, 2015, 06:50:16 PM »
Mod Note: This is getting ridiculous, I am NOT spending my time scrubbing the whole thread. Play nice or the thread will be locked and warning bans will be given out.

If you need a refresher for what is acceptable, please take a look at our forum rules. http://forum.mrmoneymustache.com/forum-information-faqs/forum-rules/

JasonK

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Re: Tenant needs time to decide if they want to renew
« Reply #12 on: June 08, 2015, 07:59:45 PM »
I think end of July is a good compromise, tell the tenants you need/want the unit rented in August and need their answer by July 1st, but they can stay month to month through July 31st (at a higher 'market' rate of course, assuming your lease allows for this).   

Hopefully they'll look around, consider their options, decide moving is a pain and renew.

Good luck~

tomsang

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Re: Tenant needs time to decide if they want to renew
« Reply #13 on: June 08, 2015, 08:18:44 PM »
Counter to what Diane C would do and with the understanding that she may curse me, I would spell out that my month to month rate is 30% higher than if you have a yearly lease.  I also think, without being too insulting, that you and those that are not increasing their rents on a regular basis are crazy. 

You said the house has tripled in value.  What is the return on investment at the current value?  Too many people base their rent on what their mortgage payment is or what they purchased the house for vs. what their return is on the current value of the house or more importantly what the market value of similar houses are going for.

If you are not comfortable increasing rents on an annual basis I would recommend that you sell and let some other heartless soul maximize their investment.
« Last Edit: June 09, 2015, 05:56:24 AM by tomsang »

Dicey

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Re: Tenant needs time to decide if they want to renew
« Reply #14 on: June 08, 2015, 11:40:05 PM »
Apologies all around. I love that we are allowed to swear on this blog. The word just popped into my head and flowed right out from my fingertips...

Note to tomsang: There is no need to fear. I may have overreacted a bit when it seemed that the tenants in question were being treated harshly.  Sometimes my need to defend the underdog escapes my control...

Fishingmn

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Re: Tenant needs time to decide if they want to renew
« Reply #15 on: June 09, 2015, 02:26:28 PM »
Here's my process - and I totally agree that this is a business so run it like one. I don't offer month to month. It's a bad idea in MN to have leases end in the winter and I like the certainty of knowing when they end.

- 50-60 days before end of lease I research market rents and send them an e-mail detailing what the new rent will be if they would like to renew a 12 month lease. I usually send links to similar units if I'm increasing rent.
- I would give them a week to respond - most do within the week
- If they don't respond I would text or call to get decision.
- If no decision by 45 days out I would start marketing for a new tenant. That's the best time window for finding new tenants as they are giving themselves time to give 30 days notice for vacating current rental
- It can be tricky but my goal is to have 0 vacancy. If you know you are going to have a lot of turnover issues that can get difficult but most of my tenants leave the units in rentable condition.

Therefore, in your case I would communicate with them again and tell them you'd like a decision soon or you will have to list it. You may need to give them a 30 day notice before the end of June to officially notify them that their lease is ending at the end of July.

The_path_less_taken

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Re: Tenant needs time to decide if they want to renew
« Reply #16 on: June 10, 2015, 08:13:49 AM »
I am not sure I have the details right, but it sounds like their lease ends on July first.  Thus, it is technically already too late for them to give you 30 days notice if they plan not to renew.

I would personally offer them a one-time, one-month extension, highlighting the fact that you do not offer month to month leases but are willing to make a one-time exception in order to give them the time they need to make their decision. Mention that this offer is in recognition of their history as excellent tenants.  Let them know that if they would like to stay, you will need to have a one year renewal signed by July 1st, and if not, you will assume that they have decided to move on, and that you wish them the best regardless.  Drop a 30 day vacate notice by on July 1st, and start looking to place tenants.  If they decide to sign the renewal during July while you're advertising the place, and you want to keep them, great.  If not, you can aim to have someone placed early in August.




+1

And I had rental property in a resort town with a hard winter...no way do I want to have a vacancy right before Christmas, etc.

I used to sign six month leases, but added a clause that said this is a "time and term agreement: you are agreeing to pay xxx dollars for six months, for a total of xxx dollars owed. Leaving early will NOT modify this agreement: this contact states that you will pay xxx dollars, total, regardless."

I started that after about the 14th tenant decided they'd been in the resort town long enough and split two months in, leaving me hanging.

Because as OP said: it IS a business.

Even with the extra clause, which we all read aloud and initialed...people would just split. I'd keep their deposit, but the place was usually a party house wreck.

I had people move there from CA and just sneer at me after paying two months and then bouncing checks:  "it'll take you six months to evict me and I'm not paying" to which I'd reply "well, not in this state, but do what you must".

I didn't enjoy being a landlord. I started out giving in to every request/concession/whim they had, but by the end I felt like a bad parent. "Please pay, or vacate." "The neighbors have filed three police reports for noise: please keep it down." "If you park like that, the snowplow can't get into the cul de sac, which affects all the tenants." Etc.


And...regardless of what your opinion is on the business choices someone else chooses...calling them names is counter-productive. Asking them questions: acceptable. Offering other options: acceptable. But name calling is behavior not conducive to a good message board. So thanks, swick.