Landlord Question and Answer Forum

Hello, First time posting here, so apologies if this category is not the correct one for this post. My tenants have a lease contract until 7/15/18 which says that 60 days before contract expiration they should get back to me telling me whether they want to stay or leave (so I could start the house showing process for prospective tenants). Well, their answer is yes - they want to stay for 1 more year. Questions: 1 - I was thinking about having them signing in the next week or so a contract for the period of July 2018 to June 2019. Would this be correct, or should I wait until a couple of days before the current contract expires? Wife is saying they should sign a contract with the dates of June 2018 to May 2019, informing the tenants the first (and current) contract ended early. 2 - If they sign a July 2018/ June 2019 contract next week and for some reason they decide to move out before the new contract is in effect, what actions would be available to me? They are still living in my property, but under a 2017/2018 contract. My concern is to scramble to get new tenants in a short period of time. Thanks, Will

Have them sign the new lease as soon as possible when they sign the contract they are obligated to fulfill the terms. I would date the contract starting 7/16/2018 and ending 6/30/2018(if you want it available july 1st) I also like to increase the rent a small amount every time $25/50 I tell them my costs go up taxes/insurance, or if they want to sign a longer lease 2 or more years I will wave the increase this time. Good luck.

Posted by Scott H, VA on Wednesday, May 30, 2018

Hello and welcome, Question 1 - Unless the original lease states "automatically renews unless written notice is given 60 days prior" than it's best to issue a new lease and have that clause included incase they want to stay past 6/2019. Otherwise, technically they're be on a MTM (varies per state). Do this as soon as possible as they may change their minds at the last minute. Question 2 -varies by state (I rent in WI/IL), but once the lease is signed, they become legally responsible for the occupancy and rent for the new lease period. Otherwise they would be breaking the lease (2018-2019) and state laws should apply. Matt

Posted by Matthew M, IL on Friday, June 1, 2018