short term lease

[Dee-Texas]

I've been getting calls on a duplex that I have...the people want a short term lease. The duplexes in my area are much harder to rent than SFH and apartments, so that's why I'm asking this question.
Do any of you rent short term? How do you charge? The same, more, more deposit? It always cost me money when a place has to be cleaned up, remarketed, etc. I usually have at least a 6 month lease but many don't honor their leases and I have to file, etc, gets costly.

Another questions is:

Do most of you have contracts that state a specific time or just go month to month?

Thanks to All,
Dee-Texas

[Bripow_MI]

Dee:
It all depends really.  I had the same situation a while back with my duplex where a tenant wanted a 4 month lease.
Given the current market rent rate for that unit, my monthly positive cash flow over a 4 month period ($200 per month) covered almost one month of holding costs should the property be vacant.
Duplexes in my area are much harder to rent out than SFH's so it always takes at least a month to fill mine.
I sat down with the prosepective tenant, showed them my costs, explained to them I had to structure there payment to cover 2 months of holding costs after they left to cover clean-up, marketing, vacant time, etc.
She could see where I was coming from and agreed.
My lease also states that under no circumstance can the tenant use their security deposit as the last months rent.
I still took the maximun allowable security depsoit under Michigan law.
Hope this helps.
BMP

[Admin]

Dee,
Welcome!

I've had numerous discussions about short-term leases in the past, but have only done it once or twice.  And to me, a six month lease was short.  I haven't done one shorter than that.

That said, I would certainly consider it at this point to cover some vacancies until Spring or until school is out, lol.

My leases always state a time period and I send out renewals every March because my lease period runs from June 1st to May 31st, regardless of when they begin to lease.  Typically, if it's less than six months away from May 31st, I'll go to the following May.

And yes, I agree that move-outs and vacancies are very expensive.  Last year I actually lowered rents for some folks to make sure they stayed just to avoid the costs.

So, is it more expensive to wait for a real tenant or to let someone move in short-term?

[travistane]

Presumably it depends on the contract.  There are contracts that is on time basis and others also have monthly based. Check out the details of the short term lease to get the point of it.

[andydallas]

I always do a 12 month lease, I had someone with a possible need to move next summer wanting to lease,,I made it a 12 month lease, that they could terminate after 6 months with 60 days notice AND paying a fee of $750,,, it is worded so that the money must be attached to the notice.

this way I have a 12 month lease if I refinance the property, and they have an 'out',,,they really wanted the property and the chances of needed to move were slim, so it was good for everyone

[Estrogen Hostage]

I frequently do shorter term than one year to make my leases end early summer. That's about the only reason.

I'd consider offering variable pricing - $550/month with 6 month lease or $650/month with no lease.

[asmayameen]

leasing for less then 6 months increase not only your cost but also it genate various problem. like lack of good deal, time consumption, work disturbance and much more. but still it depends on u if you can manage easily than go by it!

[Real Estate Seller]

Some time it is better to do a 4 or 6 month lease then letting it set and taking a chance someone breaking in to it.