12 month leases?

1

Sharing an article because some of us on this site have both STRs & LTRs or have temporarily changed our STR to LTR.

My 12 month leases have a fairly easy “provide notice to terminate lease early” clause. Basically my leases guarantee terms of lease for 12 months but with a 30 day notice by tenant or me, it can terminate.

https://apple.news/AZ_6yd0J_TAWlFpf8owIYSw

1 Like
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Looks like the people promoting the death of the 12-month lease are people that aren’t paying the mortgages. They’re just brokers that make a commission. It’s just like Airbnb telling you to lower your prices or to adopt a flexible cancellation policy.

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@Brian_R170
You are correct the information is provided by:
Property management company rep
Real estate agent
Lease management company rep
Instead of the property owners.

Since they work with multiple rentals they see the trends. To churn leases may provide additional revenue for the property manage to and lease management companies, but that shouldn’t devalue the trends they discuss.

Btw-I started including the “easy out with 30 day notice” when I realized how long & difficult a forced eviction can be. If someone violates terms of lease, I can give 30 day move out notice and not have to wait full 90 days of no payment for eviction (Covid19 muddied that up for now).

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Just remember that trends are based on thousands of data points. If your revenue is based on a representative sample (e.g., hundreds of units), then the data is meaningful to you, but if your revenue is based on a very small sample size (e.g., only 2 or 3 units), then there is a risk that your units will not conform to trends.

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On the occasion that a tenant wants out, we just work with them. Life happens and we understand that. It usually only takes a week or two to find someone, and often they pay more. Win-win.

Frankly, it looks like a crap article from someone who is paid to write clickbait.