Renew fixed term lease and rent increase

Hi there - I'm interested in peoples thoughts on two related topics.

My IP was leased initially on a 6 month lease, but that ended around 12 months ago and the tenant has been on a continuing tenancy since. Is there any benefit/point to requesting they sign a new fixed term lease?

Also - an apartment identical to my IP (same floor, size etc) - was recently leased for $470 while mine has remained unchanged at $400 for 2 years. Obviously increasing the rent to $470 is out of the question to my current tenant. I was thinking an increase to $425 would be acceptable - does anyone have advice?

Many thanks.

 

Yes. Stability and predictable for both you and the tenant - the notice periods are much shorter on periodic leases than fixed ones. Some insurers also do not like periodic leases.

Depends which state its in. In some states you can only increase by a certain formula, in some you'll get in trouble for increasing by that much and in some you can increase by an unlimited amount as long as its still arguably market rent afterwards.

Put yourself in tenant shoes though. If you were on a periodic lease and were paying $400 and could give 21 days (depending on state) notice whenever you wanted and someone put a 12 month lock in at a higher amount in front of you, would you be signing it?

The game is all about negotiation

 

I would definately do fixed term lease and get it at just below market rent $450 - $460 provide a cma