Can I choose between current tenant or new prospect?

[dif1810]

I have tenants with a lease expiring end of June. I am planning to do open house a month before. Can I choose between new prospects and current tenants even if the tenants want to extend the lease beyond June 30th?

If I have both the tenants and new prospects willing to sign a new lease, can I tell them that if they are willing to pay $100 per month then they get the deal? (bidding process)

 

[army judge]

What are the terms of your current tenants lease, as regards their lease renewal?

You should become very familiar with the existing lease.
If you violate it, it could cost you money.

Does it have a month to month tenancy provision?
Does it automatically renew, if no affirmative action is taken by the tenant or the landlord?

If the current lease has no exclusivity provisions, and the current tenant doesn't exercise any existing options, you could give your existing tenants a letter indicating your decision not to renew the lease.

Be very careful here, as you know what your current tenants are like.
They pay their rent on time, right?
A bird in the hand, as it were, versus a pig in the poke!
The new tenants might turn out to be deadbeats, or worse.
It isn't wise to play people against each other.
When you engage in that behavior, you usually get burned!

 

[dif1810]

It is just a 6 months lease (fixed term lease). There is nothing about automatic renewal. It would become a brand new lease.

"If the current lease has no exclusivity provisions, and the current tenant doesn't exercise any existing options, you could give your existing tenants a letter indicating your decision not to renew the lease." This is not applicable here right? Their lease is a fixed term, so I do not need to inform them I do not plan to extend the lease correct?

 

[jharris352]

I would be careful about appearing to be greedy. If you want to raise the rents, waiting until you have new tenants isn't the way to do it. If you did that to me I would just leave. If you want to raise the rents $100 send them a letter with that information and ask them if they want to stay. If they do extend the lease. If you try to ignite a bidding war your greed may get you an empty house.

 

[dif1810]

"If you want to raise the rents $100 send them a letter with that information and ask them if they want to stay." do I have to send USPS registered mail or just an email is OK?

 

[jharris352]

Either way is ok but I would send it USPS.