Rental Basics in Wilmington>Question Details

Victory Prop…, Real Estate Pro in Raleigh, NC

Is a two year lease more desirable to home owners, rather than short term or one year?

Asked by Victory Property Management, Raleigh, NC Wed Jun 8, 2011

4002 1/2 Oleander Dr. 1A Wilmington, NC 28403 910-447-9495 http://www.MyWilmingtonRent.com
Serving Wilmington area, Carolina Beach, Kure Beach, Wrightsville Beach, Leland, Ogden, New Hanover County

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As an investor, I personally prefer the longest lease possible. I have had some tenants for over three years, and it reduces my stress knowing that they are satisfied with the property and intend to make it their home long term. When one tenant moves out and another one moves in, it's simply expensive and time-consuming. There are carpets to clean, walls to paint, touch-ups to be made, and then there is the advertising time and energy. Almost always there is at least a month's lapse, and that's money missing in your bank account.
0 votes Thank Flag Link Thu Jul 7, 2011
This depends upon the market and the particular owner's situation, and their needs for the property. A two year lease is desirable if one does not intend to sell the property in the near future and a good tenant that takes care of a property is in place. If rental prices have been down and begin to go up, the owner may find themselves in a situation that their rental income is significantly below the market value. That can be the same case for a tenant in the reverse with a declining market. Short term rentals only make sense if an owner has more immediate plans to sell a property or use it for themselves. There are more turnover costs associated with them. It is always great to have a long term lease with an excellent tenant that takes care of your property even if they are paying less than market rent. It really is a case by case answer based on individual needs.
0 votes Thank Flag Link Wed Jun 8, 2011
Depending on my tenants, I prefer a long-term lease because then I don't have the cost of fixing up between tenants and going through the process of finding tenants. If I have great tenants, I want to keep them and I don't raise the rent. So far I haven't had bad tenants who want to stay. The bad ones leave. I also do things to keep tenants: repair things quickly, bring a holiday present in Dec, and for multi-year tenants I often have the place professionally cleaned at the beginning of the 2nd year. Result: good relationships with tenants, tenants who take care of the place.
0 votes Thank Flag Link Wed Jun 8, 2011
Hello,

Basically the shortest time possible is generaly preferred by owners--but it never hurts to ask.

Michael Kerr
Intracoastal realty
910-409-4751
0 votes Thank Flag Link Wed Jun 8, 2011
It is more desireable if tenants are difficult to find and rental rates are declining in the area.
Web Reference: http://www.golftobeach.com
0 votes Thank Flag Link Wed Jun 8, 2011
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