If you’ve never considered month to month rent for your tenants, you may want to think about it. It may seem like a risk, but for certain situations, it can be incredibly beneficial. While a typical six or twelve-month lease gives you the sense of security that you’ll have a tenant for that length of time, it’s not always a guarantee. There’s also no promise that a tenant won’t have behavioral issues that make it difficult to keep other residents happy.
There’s just one word that truly encompasses the appeal of month to month rent agreements – protection. Legally, when you sign a multi-month lease, you do not have the grounds to terminate the contract except in select circumstances, which are outlined in the stipulations. This means that a potentially problematic tenant could retain legal claim to the unit so long as they don’t cross the lines outlined in their contract. Some residents are smart enough to stay just shy of eviction-worthy behavior, but still make life very difficult for everyone around them. This can end up costing you if you lose other residents or have repeated issues.
When you’re working with a lease, you must provide evidence to obtain the legal grounds to remove a troublesome tenant. With a month to month agreement, this becomes a non-issue. Much like an at-will hire, you can provide notice to vacate the property at any time, for any reason. So long as you provide 30-day notice (or 60 days if they’ve been a resident for longer than 12 months), you’re in the clear. This can come in very handy when you have a hard-to-handle renter but don’t have official cause to ask them to leave.
Property management is sometimes about making tough calls, and a month to month lease gives you some maneuverability. Monthly agreements also often allow you to charge more rent, which can be a monetary advantage if your unit is consistently rented. Depending on your area or tenant pool, it might be worth trying.
For support and assistance in filling your units, finding quality tenants, and managing your properties, contact Alliance Property Management for a consultation.