Generally, landlords and tenants sign a property rental agreement, or lease, for a set period of time, usually between 1 or two years, depending on the situation. Sometimes, however, the need may arise for month-to-month rental agreement, where the tenant or landlord is able to end the lease at the end of any month. This can be beneficial, but there are also some downsides. We made a list of pros and cons of allowing tenants to live on your property on a month-to-month basis.
PROS:
- Since there is no end date to the agreement, both the tenant and the landlord can continue the lease as long as they wish. Should a tenant want to leave, they should give their landlord sufficient notice to allow them to re-list their property.
- There usually aren’t any penalties involved with ending the lease agreement, which is great for the tenant, especially in cases where they have no choice but to move. The tenant should at least give their landlord written notice of their intention to leave.
- Landlords can increase the price of the rent, provided that they give their tenants enough notice. Normally, 30 days is sufficient in most states.
- These short-term rental agreements are great for people who are looking for somewhere to live while their home is being renovated or while they are looking for their dream home.
- The need for having to deal with problem tenants is less of an issue when you have a month-to-month agreement with them, as you can just give them a 30 day notice to vacate the premises.
- Having a short lease agreement in place can actually attract more tenants. Students and people who have short work assignments will be looking for a month-to-month leasing option, as they cannot commit themselves to a longer period of time
CONS:
- A con for tenants is that they may have to pay higher rent for a property that is on a month-to-month lease agreement. Landlords have the right to do this because of the fact that tenants can move out without warning, which can cause issues for them when their unit is vacant. The extra fees are to offset their loss in the event the tenant leaves without notice.
- Landlords should know that with this type of rental agreement, they will find that their property becomes vacant more often, as tenants will move in and out frequently.
- Getting in lower quality tenants is a very real possibility with this type of agreement. Landlords may find that their tenants cause problems with their neighbors or damage the property. A landlord’s income is sometimes not as stable with this type of rental agreement.
There are many pros and cons to renting out a property on a month-to-month basis, so if you need some advice or some extra help managing it, contact Specialized Property Management Orlando. We’ve got your back no matter what.
