Stop with the year-long leases, and move to month-to-month only

It has been a year so far into my experiment where I transitioned all of my renters from year-long leases into month-to-month leases so that I can constantly move rent prices around to meet the market price.

The initial problem that I had was convincing my renters to move to the month-to-month arrangement. I solved this issue by giving everyone discounts for the first few months, and regularly increased rent to better match the market. I will admit I was not forthcoming about my long-term plans, but business is business.

Well over 90% of my renters have remained in their rentals have turn-over has not been drastically affected. This has been an extremely profitable transition for me and I would highly recommend it.

If in the future, there was a scenario where rent prices would begin to decrease, you could easily switch back to year-long leases, and maintain your current level of cash flow. This has happened very infrequently in the real world, so I would not expect this to be needed.

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It has been a year so far into my experiment where I transitioned all of my renters from year-long leases into month-to-month leases so that I can constantly move rent prices around to meet the market price. The initial problem that I had was convincing my renters to move to the month-to-month arrangement. I solved this issue by giving everyone discounts for the first few months, and regularly increased rent to better match the market. I will admit I was not forthcoming about my long-term plans, but business is business. Well over 90% of my renters have remained in their rentals have turn-over has not been drastically affected. This has been an extremely profitable transition for me and I would highly recommend it. If in the future, there was a scenario where rent prices would begin to decrease, you could easily switch back to year-long leases, and maintain your current level of cash flow. This has happened very infrequently in the real world, so I would not expect this to be needed. submitted by /u/-_ss [link] [comments]

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