Two Year Lease - Pros & Cons? - Landlord Forum thread 204157

Two Year Lease - Pros & Cons? by Robert (Nevada) on July 5, 2010 @23:40

I'm a new landlord and have done extensive reading over the past few months about how to rent my single family home that's going to be available Aug 1st. I thought I was doing great until a prospective tenant asked a question that I wasn't sure how to respond. They asked if I was willing to offer a 2 year lease (I've been advertising 9 month and 1 year lease terms are available). They said they wanted a 2 year lease because they didn't want to move again "any time soon." They also asked if I was willing to come down in the monthly rent if they were to sign a 2 year lease. She has not filled out an application yet, so I don't know much about her history other than the basic screening questions and small talk during the showing.

It seems this deal isn't in my favor at all other than the fact that if they are a good tenant, they are there for 2 years. However, there are issues if they are a problem tenant, or the rental market goes up before the 2 years is up, etc.

Have any landlords signed these types of deals, and if so, under what circumstances and what are your experiences? I certainly don't want to lower the monthly rent because the home is in a very nice area and I've been getting a strong response.

Thanks in advance for any advice!

PS - I'm in Nevada

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Re: Two Year Lease - Pros & Cons? by Jack (NY) on July 5, 2010 @23:57

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I do 2 year leases whenever possible----
Only if the tenants are screened throrougjly and I am very happy to accept them as tenants.

A 2 year commitment can be a landlord's dream in my opinion if they are good tenants.

On the other hand, if they are not good, then you need a good lease like the LPA lease, so you can enforce the terms they are responsible for.

Make sure you have read them every p[art of the lease before they sign it and be sure they are happy to agree to all elements of the lease. That shows how willing they are to cooperate. If they balk at parts of the lease, then it could indicate problems and maybe they are not worth renting to.
Good luck.

Re: Two Year Lease - Pros & Cons? by OK-LL on July 6, 2010 @08:19	[ Reply ]

Don't feel like you have to lower the rent on a 2-year lease. The benefit to tenant is usually that rents don't increase that 2nd year as they normally would. Or you can lower it and include an automatic annual increase in the lease language.

Re: Two Year Lease - Pros & Cons? by K (FL) on July 6, 2010 @09:40	[ Reply ]

Current tenant wanted a 2 year lease. We said no. If they're PITAs, you only have to deal with them for 1 year. If they're great, they can renew. Since some people rent for years in the same place, not wanting to move any time soon is a weak argument.

Re: Two Year Lease - Pros & Cons? by Monipenny on July 6, 2010 @13:14

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Don't do it, there is no reason for them to be concerned with having to move after the first year if they are good tenants. I suspect that they are PITA type who will have the upper hand when you are stuck with them.

I would tell them, "I would prefer to have a long term tenant. However, I only do a one year lease after that I may go M-M or offer another year lease if tenant works out.

No rent decrease.

Re: Two Year Lease - Pros & Cons?

Re: Two Year Lease - Pros & Cons? by Anonymous on July 6, 2010 @22:13	[ Reply ]

People that ask for discounts and special terms up front are at a big disadvantage with me. After offering them an application I move onto the next person. I do not discuss discounts or special terms until I have had a chance to check their credentails out first. Like your experience, this person was not really serious; they just wanted to see if you would make the mistake of giving in to them without due diligence. And you wisely said no.

Re: Two Year Lease - Pros & Cons? by Ed (MN) on July 7, 2010 @08:35

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make sure they are good tenants first.

I have signed two year leases. I have a $20 per month discount for a two year lease. Most rents will continue to go down, not up, over the next two years.

The second year, assuming they stay, you will not have any turnover costs. You save big.

I sometimes give renewal incentives anyway.

If you can put a clause in that says discounts will be recoved if tenant does not stay two years, even better.

Or, give the 25th month free.

Re: Two Year Lease - Pros & Cons? by Anonymous on March 12, 2015 @18:15	[ Reply ]

Let me give a tenant perspective. My family and I leased our last house (1 year lease) and we loved the house and neighborhood. Only needed the dishwasher repaired one time and that's it. Other little repairs we just did on our own. Our mgt company loved us- never late on rent etc. But- the owners decided to sell and so after only a year- we moved again. Less than a week later there was a For Sale sign up and in 2 months the place was sold. We know because we only moved around the corner as we like the neighborhood. We got every penny of our deposit back- inuding pet deposits. The house we currently live in- we asked for a 2 year lease because moving is horrible and expensive. We have just one child who is a toddler, and don't want to be moving her all the time. Well- guess what- this prop mgt company called to set up an appointment for an appraiser to come through. Our 2 year lease is up in May (at the time of the appraisal appointment it was like 2 1/2 months left). We asked if the owner intended to sell and sure enough we were told yes and that we would be getting a 60 day notice soon- which we did. So now we are moving AGAIN. Obviously people have a right to sell their rentals. I understand that if I purchased a home I wouldn't have to worry about moving. My point in this post is that we ways want a longer lease because moving your entire world is hard! We would like to stay put its for obsolutely no other reason. It's even a bigger Concern once my daughter enters school as we don't want her to be changing schools either. I really had no idea that our wanting a 2 year lease would be looked at as a negative. :(

Re: Two Year Lease - Pros & Cons?

Re: Two Year Lease - Pros & Cons? by maps flats (Florida) on August 15, 2016 @16:06	[ Reply ]

Two year leases are great, as a NYC tenant they are a must. However, as a Florida landlord they are a nightmare. Be sure to check the laws in your state before signing a two year lease. In Florida, you not only need two witnesses to sign a two year lease but you may be giving your tenants ownership interest in your property and you definitely can not evict a two year lease tenant ... it's a different and more costly procedure should the need arise to 'evict' the tenant. Be careful and due diligence - know the laws governing two year leases in your State.