When Flexible Leases May Be Appropriate

One of the most common reasons to relocate to a new city is for employment. There are several large companies with factories or headquarters in the Greenville, South Carolina area-including Hubbell Lighting, Michelin, BMW, Lockheed Martin, 3M, Honeywell, Caterpillar, and General Electric. Many residents who move to Greenville, and who seek the services of Greenville property management companies, will reside in corporate housing or else sign a lease to correspond with their starting a new job in the area.

However, in today’s economic climate, job security it not always certain. It can affect both new employees and long-tenured employees alike, which is why Greenville property management companies may consider adopting policies for helping tenants who suffer from involuntary job loss.

Last year, for example, Lockheed Martin cut 300 jobs at its Greenville, SC aircraft maintenance facility after the company failed to secure a $100 million dollar contract from the U.S. Navy. This cut represented over 25% of the plant’s employees, who were given at least 30 days’ notice but offered little beyond career counseling and resume-writing services. Unexpected job cuts can lead to a feeling of uncertainty amongst Greenville property management companies, but these cases will always be tougher for the individual tenants than for the property managers themselves.

With that said, here are some ways that Greenville property management companies can assist tenants:

  1. Offer flexible rent payments. Rather than require tenants to pay the entire month’s rent on the 1st of the month, a Greenville property management firm may allow split payments: Half the month’s rent gets paid on the 1st of the month, and the other half on the 15th. This grants the tenant more time to make rent payments without the burden of late penalties.
  2. Offer flexible leases. Another common policy is to allow tenants who lose their job involuntarily within twelve months of signing their lease to terminate their lease without penalty. A lease is a long-binding contract, usually last twelve or twenty-four months, and few tenants who sign one plan on breaking it. However, job loss and relocation are usually unplanned events, and it can alleviate the tenant’s burden if the Greenville property management firm overseeing their residence has adopted such a policy.

While these policies could lead to a higher tenant turnover rate for firms handling property management in Greenville, SC, they may also attract home-seekers who recognize that personal finances are never 100% certain, and that it’s best to be prepared for unpleasant scenarios.