The Reluctant Landlord

  • Home
  • About Us
  • Archive
  • Work with Me!
    • Guest Post
  • Contact
  • Disclaimer
  • Self Management
  • Military & Real Estate
  • Buying & Selling
  • Property Manager
  • Our Strategy
  • Books
You are here: Home / I am a Reluctant Landlord / Multi-Year Leases: The Good, the Bad, and the Ugly

Multi-Year Leases: The Good, the Bad, and the Ugly

September 8, 2014 by Elizabeth Bennett Colegrove Leave a Comment

This post may contain affiliate links.

Multi-Year leases: the gold standard or leaving money on the table while locking you into a long term lease?

Let’s discuss the pros and cons of multi-year leases.

multi-year leases

The Good

Reduced Turnover – Loss of rent between tenants is expensive and advertising costs (flying out or hiring a manager if you are not local)

Reduced Move in Wear and Tear – Housing isĀ damaged more often during moves.

The Bad

Undermarket RentsĀ – Rents naturally increased year to year. When they are not increased then the rates fall below market value. Long term leases lock you below market for the length of the lease.

Lease Non-Breakable Without a Clause – Life changes and the landlord is unable to move back into their own house or sell it unless both sides can agree to the terms.

The Ugly

Military – They can break the lease no matter how long the lease.

Average Tenants – Default law (Buy Out Clause Discussed) allows tenants to break the lease no matter the length as long as they find another person. Therefore, a long lease only locks you and not the tenant into the lease.

Turnover Expense – Longer tenancy will require larger, more costly renovations between tenants. Personally, multi-year leases do not sway me. I have had three tenants who signed long leases either break it or try to break it. Therefore, I personally go with the best well-qualified tenant. I certainly don’t give a break on rent. With the improving economy there is a huge likelihood of rent increasing. Therefore, you are leaving even more money on the table when you give a discount.

0

Filed Under: I am a Reluctant Landlord, I am a Small Time Landlord, I am an Empire Builder, Self Management

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

I love my family, my country and real estate. My goal is to retire early through frugal living and real estate investment. I am making great strides and want to share the information I've learned through the process. Read More...

CHECK OUT MY BOOK!

Sign up for the Newsletter
JOIN HUNDREDS OF OTHERS IN RECEIVING OUR FREE WEEKLY UPDATES STRAIGHT TO YOUR EMAIL INBOX!

Most Popular Posts:

  • How to Create Freezer Meals for One Person
  • 3 Ways a Landlord Can Split the Utilities
  • How to Set Up Your Rental Accounts
  • The Solution to a Broken Lease: The Buy-Out Clause
  • What are a Military Widow’s Death Benefits?
  • How to Get Rid of Cat Urine in Cushions, Carpet and Clothes
  • How to Write an Incredible Lease
  • How to Write a One Page Lease Renewal!
  • Is it Worth Buying a House if You Move Every Two Years?
  • Landlords: Should You Include a Washer and Dryer in Your Rental?

GET THE BUTTON


More Posts from this Category

Search

Categories

Archives

Copyright 2023, The Reluctant Landlord. All Rights Reserved. Custom design by Pixel Me Designs
Sign up for the Newsletter
JOIN HUNDREDS OF OTHERS IN RECEIVING OUR FREE WEEKLY UPDATES STRAIGHT TO YOUR EMAIL INBOX!
[close]
Brought to you by
Displet