When it comes to leases:
The lease terms you use can significantly impact the amount of revenue you receive, as they can influence many different factors, including the trust renters have in you. Difficulty paying rent is the second-most common reason for eviction in Canada. That's why having a lease that ensures renters can continue paying you what you are owed is often the best option.
Below, you'll learn how these terms might impact your rental income, affecting things like:
So, read on to discover how to align your lease terms with your needs and take a weight off your shoulders.
In British Columbia, people typically use the twelve-month lease for their investments. These will then, as per the lease, convert to a month-to-month lease under local laws or as explicitly defined in the lease.
The month-to-month lease then continues automatically each month that the renter remains in the property. It ends only when you or the tenant offers proper notice.
Together, these options provide significant opportunities for renters to provide peaceable enjoyment of their accommodation. They don't have to worry about being moved on too fast. Then, if there are problems long-term, you can allow them to stay in that location unless you need the area for something else.
These predictable timelines enable you to plan your letting process and promote in the Surrey rental market. You'll also enjoy the benefits of long-term income, knowing it will arrive as expected.
As mentioned above, the twelve-month fixed term, followed by the month-to-month, is typically best for both parties if they are comfortable with the situation. However, you may want to adjust this based on your needs. Examples include:
You might want to maintain flexibility in other areas of your process to demonstrate your capabilities as a landlord. For example, offering showing times outside of office hours. While you should avoid appearing unprofessional, try making changes to benefit the landlord specifically.
While the fixed term followed by a periodic lease is relatively common, you may want to use a different one instead. Here are a few other options.
These allow people to make multiple leases with a set term. These flexible terms allow you to make better plans every year.
They are perfect for those who might be working in one area for a specific amount of time, such as on a construction contract.
These align with school calendars, such as only for ten months. They reduce tenancy costs during periods when students are not using them. Make sure you understand what your local area offers so that you can align it correctly with reality.
You can also offer people the option to hold onto a specific rental during a summer holiday, without requiring them to stay. You can combine this with reduced rent to provide a unique benefit. However, you will need to ensure that the renter understands that they still bear responsibility for any maintenance work.
Similarly, ensure they understand to leave it clean when they depart, and consider inspecting the rental during this period to verify they maintain this standard.
While more exist, the primary leases you should expect to see, especially in British Columbia, include the following.
Switching from a fixed-term to a month-to-month arrangement allows both the landlord and the tenant to have an easy "out" if they determine they do not have a good deal. The stability is helpful for many renters and can usually be converted to a month-to-month lease agreement if necessary.
In British Columbia, any lease that is not automatically renewed becomes month-to-month. The eviction period is often made clear on the lease itself.
Alternatively, you can have a month-to-month lease from the first day. These are helpful if you want more flexibility, such as if you expect more students to stay in the location.
Another option is for a short-term lease. These may be a temporary lease, such as for six months or a year. Again, these are popular with students who may wish to change up their accommodation once every year.
Whichever you choose, ensure you make it clear which one you are using in the lease itself. Keep all terms in writing for clarity and to comply with BC laws.
You may only increase the rent for a location once every twelve months, up to the annual cap as set by your local authority. Should you wish to make use of this opportunity, ensure that you apply to your local jurisdiction. Use the correct rental increase forms and offer your renters the appropriate notice period for your area.
Similarly, notices to end a tenancy must use the correct forms. Any letter must follow templates as befit the changes you wish to instigate.
Make sure to choose the right lease terms depending on your needs. In most cases, this will be a twelve-month fixed term, followed by a month-to-month option.
If you need help with this process or are looking for advice, Acford Property Management has years of experience in residential tenancies and compliance. We can help you with anything from renewals to inspections and documentation. Contact us today to learn more about our full range of options.
- A twelve-month fixed-term lease is especially common in British Columbia and often converts to month-to-month.
- The lease terms you use can change to reduce the number of vacancies you have.
- Ensure that you time rent increases legally so that you can achieve the most significant profit without challenges.
The lease terms you use can significantly impact the amount of revenue you receive, as they can influence many different factors, including the trust renters have in you. Difficulty paying rent is the second-most common reason for eviction in Canada. That's why having a lease that ensures renters can continue paying you what you are owed is often the best option.
Below, you'll learn how these terms might impact your rental income, affecting things like:
- Vacancy risk
- Rent growth
- Good or bad reputation and your ability to attract tenants
- Cleaning costs
- Downtime between tenants
So, read on to discover how to align your lease terms with your needs and take a weight off your shoulders.
What Is the Most Common Lease Term?
In British Columbia, people typically use the twelve-month lease for their investments. These will then, as per the lease, convert to a month-to-month lease under local laws or as explicitly defined in the lease.
The month-to-month lease then continues automatically each month that the renter remains in the property. It ends only when you or the tenant offers proper notice.
Together, these options provide significant opportunities for renters to provide peaceable enjoyment of their accommodation. They don't have to worry about being moved on too fast. Then, if there are problems long-term, you can allow them to stay in that location unless you need the area for something else.
These predictable timelines enable you to plan your letting process and promote in the Surrey rental market. You'll also enjoy the benefits of long-term income, knowing it will arrive as expected.
What Is a Lease Term Example That Works for Me?
As mentioned above, the twelve-month fixed term, followed by the month-to-month, is typically best for both parties if they are comfortable with the situation. However, you may want to adjust this based on your needs. Examples include:
- Adding a renewal window in which to discuss options
- Setting notice expectations in writing to avoid surprises
You might want to maintain flexibility in other areas of your process to demonstrate your capabilities as a landlord. For example, offering showing times outside of office hours. While you should avoid appearing unprofessional, try making changes to benefit the landlord specifically.
Other Lease Term Examples Landlords Use
While the fixed term followed by a periodic lease is relatively common, you may want to use a different one instead. Here are a few other options.
Back-to-Back Fixed Terms
These allow people to make multiple leases with a set term. These flexible terms allow you to make better plans every year.
They are perfect for those who might be working in one area for a specific amount of time, such as on a construction contract.
Student-Cycle Fixed Terms
These align with school calendars, such as only for ten months. They reduce tenancy costs during periods when students are not using them. Make sure you understand what your local area offers so that you can align it correctly with reality.
You can also offer people the option to hold onto a specific rental during a summer holiday, without requiring them to stay. You can combine this with reduced rent to provide a unique benefit. However, you will need to ensure that the renter understands that they still bear responsibility for any maintenance work.
Similarly, ensure they understand to leave it clean when they depart, and consider inspecting the rental during this period to verify they maintain this standard.
Frequently Asked Questions (FAQs)
What Are the Three Main Types of Leases?
While more exist, the primary leases you should expect to see, especially in British Columbia, include the following.
Switching from a fixed-term to a month-to-month arrangement allows both the landlord and the tenant to have an easy "out" if they determine they do not have a good deal. The stability is helpful for many renters and can usually be converted to a month-to-month lease agreement if necessary.
In British Columbia, any lease that is not automatically renewed becomes month-to-month. The eviction period is often made clear on the lease itself.
Alternatively, you can have a month-to-month lease from the first day. These are helpful if you want more flexibility, such as if you expect more students to stay in the location.
Another option is for a short-term lease. These may be a temporary lease, such as for six months or a year. Again, these are popular with students who may wish to change up their accommodation once every year.
Whichever you choose, ensure you make it clear which one you are using in the lease itself. Keep all terms in writing for clarity and to comply with BC laws.
How Do Rent Increases and Notice Periods Work in BC?
You may only increase the rent for a location once every twelve months, up to the annual cap as set by your local authority. Should you wish to make use of this opportunity, ensure that you apply to your local jurisdiction. Use the correct rental increase forms and offer your renters the appropriate notice period for your area.
Similarly, notices to end a tenancy must use the correct forms. Any letter must follow templates as befit the changes you wish to instigate.
Find the Best Deal for Your Rental
Make sure to choose the right lease terms depending on your needs. In most cases, this will be a twelve-month fixed term, followed by a month-to-month option.
If you need help with this process or are looking for advice, Acford Property Management has years of experience in residential tenancies and compliance. We can help you with anything from renewals to inspections and documentation. Contact us today to learn more about our full range of options.