Long Term vs. Short Term Leases – Which is Best for Your Rental Home?
When signing a rental contract on a property, many landlords wonder if they should sign a one year lease or a multiple year lease. Most landlords want a long-term, reliable resident who pays rent on time and takes care of the property. But, signing a long-term lease may not be the best way to achieve that goal.
House Rental Lease Agreement: Incentives to be a Great Tenant
When you sign a long-term lease with your tenants, you don’t give them much incentive to be great renters. It is far more important to have a great resident than it is to have a long-term resident. A great resident will take care of your home, make small repairs when necessary, and be great neighbors. It’s better to have this kind of a tenant than it is to have a long-term lease.
Short Term Lease Agreement: One Year Lease That’s Renewable
A tenant may want a long-term lease, but nine months into the contract, they realize that the landlord is not taking care of the property, or feel the landlord isn’t making the required repairs, or the neighbors aren’t as nice as they thought. Perhaps the school system isn’t as good as they thought it would be. You don’t want to be stuck in a long-term lease with a renter who isn’t happy. An unhappy resident is never going to work in your favor.
We recommend you have a renewable one-year lease. Both parties will then have something to lose. The property owner can prove that he or she is a great landlord who takes care of the property. The tenant can prove he or she is a great resident. This will create a long-term relationship, even if the lease is only for one year.
In all my years providing professional property management, this is probably the most important thing I have learned. If you’d like to talk about it further, or you have any questions about property management in Buford, please contact us at 4th Avenue Property Management.
Whether you’re buying, selling, or in need property management services, 4th Avenue Propert Management and The Rob Jenkins Team can assist you.
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