What do you guys see happening to the housing rental market over next 3 years? | TigerDroppings.com

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Zilla
LSU Fan
Friendswood, TX
Member since Jul 2005
9907 posts

What do you guys see happening to the housing rental market over next 3 years?


My house is for rent, and my asking price is $1450 for a 1 year lease...I have an "offer" from a possible tenant to rent @ $1250/month with a 3 year lease... I'm struggling with the positives/negatives... Tenant is known by neighbors and probably fantastic in terms of being able to afford it (they are just tight with their money supposedly) and going to take care of the place...single no kids/pets... They want the place for 3 years with strong possibility of wanting to stay there indefinetly ...I'm trying to figure out how to best value these considerations ...

Other thing I'm wondering about, isn't a 3 year lease too long ? Does it actually become a negative for me since I'm locking in this lower price...I think I could get $1450 easily with a new unknown tenant yearly ... but yea I'd run more risk of vacancy after each 1 year term....
Thoughts?



This post was edited on 8/7 at 3:34 pm



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TigerintheNO
LSU Fan
New Orleans
Member since Jan 2004
22533 posts

re: What do you guys see happening to the housing rental market over next 3 years?


I believe the rental market will vary based on location.





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seawolf06
LSU Fan
Raleigh, NC
Member since Oct 2007
4258 posts

re: What do you guys see happening to the housing rental market over next 3 years?


Why not include an annual increase and see if they will go for that?





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Zilla
LSU Fan
Friendswood, TX
Member since Jul 2005
9907 posts

re: What do you guys see happening to the housing rental market over next 3 years?


Baton Rouge ... 3br off Old Jefferson if anyone is interested ;) lsucity-1 at yahoo


This post was edited on 8/7 at 3:33 pm


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elposter
Alabama Fan
South Carolina
Member since Dec 2010
7748 posts

re: What do you guys see happening to the housing rental market over next 3 years?


Try to slip in a unilateral right (your right) to terminate with 60 days notice and see if he notices.





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LSUTigers00884
LA-Lafayette Fan
Lafayette
Member since Oct 2011
739 posts

re: What do you guys see happening to the housing rental market over next 3 years?


I would do it. Add a clause in the contract of x amount of dollars (3 months rent possibly) if they want out early.





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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21107 posts

re: What do you guys see happening to the housing rental market over next 3 years?


quote:

Thoughts?


I'd have a yearly increase 1250, 1300, 1350. Also need to have a very strong cancelation policy for taking the discount. But as a landlord, having a 3 year lease is awesome. I wouldn't turn it down if it gives you the right ROI.






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Motorboat
LSU Fan
At the camp
Member since Oct 2007
9580 posts

re: What do you guys see happening to the housing rental market over next 3 years?


I recently had a similar situation. My tenants are good so when the asked for a reduction from 1400 to 1200, I obliged. $200/month will not kill me and there's a check in my mailbox every first of the month without fail.







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NC_Tigah
LSU Fan
Member since Sep 2003
50468 posts

re: What do you guys see happening to the housing rental market over next 3 years?


quote:

What do you guys see happening to the housing rental market over next 3 years?
My house is for rent, and my asking price is $1450 for a 1 year lease...I have an "offer" from a possible tenant to rent @ $1250/month with a 3 year lease... I'm struggling with the positives/negatives... Tenant is known by neighbors and probably fantastic in terms of being able to afford it (they are just tight with their money supposedly) and going to take care of the place...single no kids/pets...
Obviously situations vary, so you're getting shot-in-the-dark advise here.
Can't speak much to pricing. Sounds like a quality renter, though. That's key.

We were offered a nice sum for use of our vacation place this summer. No go. We've not rented previously, and in this case, the renter was an unknown. Previous owner had rented it to celeb/high-end clients and sustained some damage -- accidental, but damage nonetheless. Obviously weekly rental is a different ballgame, but concept is the same. PITA.

Known tenant can certainly make a difference. Security deposits notwithstanding, they still often won't treat your property as well as they would if they owned it. At least there probability that they won't leave a bunch of damage, though. Assuming profitability, I'd be inclined to negotiate a deal with quality tenants. Otherwise you might find you were penny-wise, but pound-foolish in the long-run.








This post was edited on 8/8 at 1:25 am


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DontTazeMeBro
Tennessee Fan
Gatlinburg, TN
Member since Oct 2011
135 posts

re: What do you guys see happening to the housing rental market over next 3 years?


Not knowing your market... It's hard for me to say with 100% certainty. But just think of all the expenses you incur with tenant turnover. The guy sounds like a great opportunity as long as your numbers work out.





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RunningBlake
USA Fan
Member since Aug 2011
1895 posts

re: What do you guys see happening to the housing rental market over next 3 years?


Personally, I think a 3 year lease is too long.





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BigAppleTiger
LSU Fan
New York City
Member since Dec 2008
6108 posts

re: What do you guys see happening to the housing rental market over next 3 years?


quote:

Personally, I think a 3 year lease is too long.



Is this your opinion as a landlord or just a guy on the Money Board? I speak as a landlord, and if the tenant is reliable and takes care of the property, there is no such thing as a lease that is too long unless it works against my intended use of the building.



This post was edited on 8/8 at 3:35 pm


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Zilla
LSU Fan
Friendswood, TX
Member since Jul 2005
9907 posts

re: What do you guys see happening to the housing rental market over next 3 years?


but if you are allowing a discount for the longer lease, how is that a good thing... you are locking yourself into a lower price for a long time...Shouldn't their be a premium instead of a discount for allowing the longer lease since there wouldn't be any rent increases?


This post was edited on 8/8 at 3:50 pm


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gamatt53
Georgia Fan
Member since Nov 2010
739 posts

re: What do you guys see happening to the housing rental market over next 3 years?


quote:

but if you are allowing a discount for the longer lease, how is that a good thing... you are locking yourself into a lower price for a long time...Shouldn't their be a premium instead of a discount for allowing the longer lease since there wouldn't be any rent increases?


Having an empty unit costs way more than a nonvacant unit with a below market rate.



This post was edited on 8/8 at 10:41 pm


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C
LSU Fan
The Woodlands, TX
Member since Dec 2007
21107 posts

re: What do you guys see happening to the housing rental market over next 3 years?


quote:

Shouldn't their be a premium instead of a discount for allowing the longer lease since there wouldn't be any rent increases?
You're getting guaranteed business for 3 years. No redoing contracts. No background checks. No Advertising. No lawyers fees.






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RunningBlake
USA Fan
Member since Aug 2011
1895 posts

re: What do you guys see happening to the housing rental market over next 3 years?


Yes a landlord. I just have one rental though. Average stay is around a year. General skepticism is why I think 3 years is too long. Basically, it sounds too good to be true and I doubt said renter will stay 3 years.





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Fat Bastard
New Orleans Saints Fan
Paradise
Member since Mar 2009
15627 posts

re: What do you guys see happening to the housing rental market over next 3 years?


All depends what city you are in and what the unemployment and jobs look like. Also the types of properties you want to rent.





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Alabama Slim
Alabama Fan
2009,2011 BCS National Champions
Member since Jul 2007
9274 posts

re: What do you guys see happening to the housing rental market over next 3 years?


quote:

My house is for rent, and my asking price is $1450 for a 1 year lease...I have an "offer" from a possible tenant to rent @ $1250/month with a 3 year lease...


if you've done your due diligence checking out his credentials I would take that in a second. And yes, I own rental property if that makes a difference.






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