If a consumer does not qualify for the dream home they wanted, they can find a rental just as nice if not of better quality. This is very attractive, along with the fact that the consumer is not responsible for certain repairs and the taxes that come with owning a home. The downside is the instability of how long a consumer can stay in that home. Most, if not all, property management companies require a consumer to enter into a lease ranging from 1 year to 3 years. When entering into a contract most consumers do not take the time and effort to read and review the terms and conditions. Most consumers walk away from signing a lease feeling that as long as their payment is on time and they are a good tenant. they can stay as long as they wish. In most cases this is not so. Lease agreements are provided by the management company and ensure that the management company / owner of the home secures their investment. 99% of the time the renter has no input on the terms and conditions of the lease they sign.
Everyone can assume the different scenarios of why a tenant can be evicted from a home or why a lease is terminated early by the home owner or management company. What most consumers do not consider is an early lease termination due to home owner income. Simply stated, the home owner or management company terminating the lease early to place a renter in the home that will pay more than the current tenant. As the housing market bounces back toward where it was before not only are home prices rising but rental prices are rising as well. The two bedroom 2 bath home that rented for $500 per month 2 years ago may very well bring $700 a month in this market. For a consumer that has signed a 3 year lease, they may think they have one more year before either moving or signing a new lease, however they could be 30 days away from having to move out. Where the consumer gains on not having to pay the home taxes and in some cases certain utilities, they lose on the living stability. Many investors have leveraged their money to purchase these homes and have increased costs as interest rates rise. Those losses cannot be recuperated within the leasing agreement and in most cases the only remedy is to acquire a new renter with a higher rent payment