Thread: How do you charge for long term property rentals?

Here ya go. If they use their last month for the 12 th month...ya collect it again !!

LEASE RENEWAL/EXTENSION AGREEMENT



According to Paragraph 3. of original lease beginning Aug. 1, 2008, between xxxx, lessor and xxxxxx, lessee for unfurnished home located at anytown, USA. it is hereby understood and agreed by all parties to the original lease to renew or extend said lease for a period of 12 months , beginning Aug. 1, 2010 and ending July 31, 2011 at the same monthly rent of $1,180.00. All other terms of prior lease to remain in effect.




DATE ___________________ LESSEE _________________

DATE ___________________ LESSEE _________________




DATE___________________ LESSOR _________________

It's both a science and an art to really arrive at a good amount for a security deposit. Of course, the #1 thing to check is the laws for your area to make sure you aren't over-charging. And, as jmartin suggested, you want to get as much up front as you don't want to be left short-handed when a tenant moves out and the SD doesn't cover all the damage they left. Conversely, as LagunaLauren said, charging a lot up front can lessen your prospective tenant pool, though. Especially, when in many cases tenants have to come up with hefty utility deposits as well.

All that being said, I typically charge 1st month's rent + security deposit equal to 1st month's rent. On a rare occasion, I may let the tenant split the security deposit over the 1st two months.

My rental agreements have specific sections for rental rates and occupancy. So at about the 10 month mark in a 12 month lease I will send a letter and rental agreement amendment to the tenant that updates these two sections of the rental agreement only. If they agree, they sign the amendment and return to me.
Good points by all to check state/local laws on allowable deposits. In my location, a security deposit cannot be more than one months rent.

A standard residential rental contract is usualy 1 year, they have to pay 1st + last+ 1 month securty when they sign.

Oh and no pets, especialy cats!

I charge a SD equal to the monthly rent. If I have to prorate a month (they move in mid month) I collect that before they move in (rent divided by a 30 day multiplier no matter the month). If they move in within the last 10 days of the month I also collect the next months rent too.

On top of that, pets bring a fee of $250 each (no more than 2 and under 25 lbs) and a monthly rent ($10-20 ea). I usually have no problem getting it either.

I'm just trying my first attempt at section 8 and I also charged a $300 cleaning deposit (mainly to dissuade, didn't work) on top of everything else. Can't wait to see how this pans out in the coming months. I like the idea of guaranteed gov'nt money, just hope its enough to cover my nut in case the tenant bails (still don't know her part vs.gov'nt)