With my first tenant, I signed a traditional 1-year lease. After it was up, she suggested a 3-year lease. At the time, she paid rent every month on time and had little to no complaints about repairs. My dad and I thought it was fine. Shortly after signing the 3-year lease, things went downhill. She never paid rent on time and was at least several weeks, if not a month late.
Since I signed the lease, I was bound for 3 years. I was annoyed with the late rent, but at the end of the day she still paid. Because she had other medical and family issues, I gave her the benefit of a doubt and didn’t charge her late fees for the rent. I was a fool for doing that because I think she really took advantage of my kindness. It got to a point where she didn’t pay rent at all that I finally moved toward the eviction process.
In hindsight, I should have just done another 1-year lease or just go month-to-month. It would have given me more flexibility. I could have raised rent which I really wanted because my rent didn’t cover my mortgage as previously mentioned here. Also, I would have been easier to get rid of my tenant before it got to the point of eviction.