Most traditional lease agreements are for 12 months. Today, we’re talking about whether there are any benefits to owners with a month-to-month lease.
Rental Agreement: Stability versus Flexibility
If you’re worried that your tenant won’t follow the terms that are required to live in your property, a month-to-month leave gives you a little flexibility. But, it gives the tenants flexibility, too. They can move at any time with only a little notice. A 12-month lease is the most advantageous to owners who have done a thorough tenant screening and know their tenant is a good fit. You can plan your expenses from year to year with a traditional lease, and you’ll keep your vacancy to a minimum.
Consider your Investment Goals
As an owner, you need to know your purpose for investing in order to choose a rental agreement that makes sense. Owners who are highly involved in the property or live out of town might prefer to rent out a property month-to-month.
If you intend to sell the property in the near future or move back into it, a month-to-month lease might be better for you so you aren’t tied to a 12-month lease. If you find yourself in a situation where you have a long term lease but you need the property back, you’ll have to negotiate with your tenant because the tenant has the right to stay there until the end of the lease term.
Working with a Professional Management Company
Professional property management companies have resources available if you need to take your property back before the end of the lease term. We can help your tenant find another place to live and give you back your home. We make sure the solution works for everyone.
Many tenants want the stability of an annual lease agreement. They don’t want their rent to be raised often, and an owner can raise the rent with 30 days’ notice on a month-to-month lease. However, there are also tenants who are preparing to buy a house in the near future, so they might benefit from a short term lease. Most tenants in this market, however, prefer a long term lease.
If you have any questions about how to construct a lease agreement, please contact us at Invest West Management. We can help you with any property management and real estate investing needs.