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I don't think it makes any difference whether it's for a new tenant or an existing one. The standard of one year for a residential lease seems pretty universal. Commercial leases are completely different, are long term and have various clauses written in concerning rent increases, COL adjustments, etc.
If you don't want to enter into a lease extension with your current tenant you can always let it roll over to a month to month tenancy. The same terms and conditions of the original lease still have to be adhered to but if you want to raise the rent or have the tenants move out you only have to give the (usually 30 or 60 days) notice required under your state landlord tenant laws.
If you're comfortable entering into another year's lease then do so but I wouldn't extend a lease any further than one year.
from a landlord perspective, I dont think I would do it. It locks YOU more than it locks them. This is because any tenant that wants to break a lease is going to break the lease. You have to look for another tenant when they decide to break the lease.
But the landlord, on the other hand, cannot break the lease as easy as a tenant can. Without eviction and much headache, that is.
However, if these tenants are excellent, I doubt they will suddenly turn bad. If you are afraid to lose them, maybe consider it. But in general, it's to the landlord's advantage to have a shorter lease. You can raise the rent if/when needed and you can get a bad tenant out much easier.
Some states might not allow it. Florida has some restrictions on leases over 1 year but there are exceptions.
I don't think I would do it. It locks YOU more than it locks them.
...if these tenants are excellent, I doubt they will suddenly turn bad.
The lease serves three basic purposes: 1) it "codifies" all the terms and conditions that each party
will be expected to honor; 2) it deflects the people without the intention to remain very long;
and 3) it assures the better tenants who care about their credit and references and generally know
enough to care about the legalities (and who won't rent without a lease).
But after the first year of successful and uneventful experience with each other there shouldn't be need
for more than the common and traditional "shall revert to a month to month" arrangement. The key is
in having lease language about HOW that is done (with the LL's right to change the rate spelled out).
Quote:
Originally Posted by STT
If you're comfortable entering into another year's lease then do so
but I wouldn't extend a lease any further than one year.
From the tenants standpoint the biggest concern is usually the rent amount.
I've asked my LL for a 24 month lease before. Its a matter of perspective I think. If that tenant has paid rent on time for a year and keeps up the property, I can see a long term lease would be beneficial for both parties.
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