My current tenants were having a little bit of a tough time the last few months. The husband lost his job and they couldn’t afford an increase in their rent. I decided to allow them to keep the rent the same if they would sign another year lease. They have been good about paying rent on time and I’ve had no issues at all with them. The only item I really had to fix last year was a broken dishwasher, I ended up just replacing it.
I already had a renewal form from my agent last time which is just an amendment of the contract. It was really simple to fill this out and email to the tenants. I’m not an expert on lease contracts, which is why I’m glad I have my agent. They’re an expert on things like lease accounting for ASC 842 compliance and they make sure that I’m all up to date. Anyway, my tenants emailed the form back this week and have extended until April 2015.
Here’s what it looks like:
So I’ll continue collecting $1700/month for another full year without having to worry about any vacancy issues. The rental market in Austin is strong, I probably could have put the house back on the market for lease and charged $1800. However, I’d risk having to find tenants to start at the beginning of May and also have to pay 40% of the first month’s rent to my agent. I don’t think it’s worth the hassle.
I also felt like I owed it to my current tenants, considering they have been such good tenants and seem to be struggling right about now. I’m sure things will start to turn around for them soon, but nevertheless I have told them they can find more information at gofundme.com if they start to struggle with their rent.
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