Month-to-Month Leases
Flexible Options for a Tough Rental Market
More and more landlords and property management companies are offering tenants month-to-month leases. In a rental market as tough as this one, landlords are willing to try nearly anything to fill vacancies.
Besides, more tenants have poor credit, evictions, and foreclosures in their histories. Bending the rules and becoming more creative may become more necessary these days.
Month-to-month leases offer both sides the option to break the rental agreement with 30 days notice. If no such notice occurs, the lease renews itself for another 30 days.
How can month-to-month leases help strapped landlords?
- You can choose from a larger pool of applicants;
- You can take advantage of your location if it’s a college town or popular vacation spot;
- You can rid yourself of a problem tenant after only one month;
- You might be able to charge a premium for the risk associated with lower-quality tenants;
- You’re not locked into a long-term rent payment and can raise the rent when the market adjusts back up;
- It’s easier to evict.
Of course, the tenant can leave at the end of any month, with the loss of rent, associated expenses to fill the vacancy, and other turnover headaches. Still, month-to-month leases offer flexibility that may help many a landlord survive this challenging rental market.