Short Term Vs Long Term Rentals

While most property owners choose to offer tenants yearlong lease agreements there are those owners that prefer month-to-month lease agreements instead. But why?

If you are curious about the pros and cons of month-to-month lease agreements vs a yearlong, and questioning what the better option is for you and your property then continue reading below.

Typically, when you are discussing lease options your most common option would be a 12-month lease with the option to renew close to the end of your lease term. However, a month-to-month lease is a 30 day or 1-month contract that typically renews automatically each month until the resident decides to move or the owner decides to not continue offering the lease the following month. This is generally a popular option for a tenant that may be moving to the area and just needs temporary housing until their property is available or finished.

Now, we will examine both the pros and cons of offering month-to-month lease agreements.

Pros

  • Flexibility: One of the biggest reasons property owners like to offer month-to-month lease agreements is because of the flexibility this type of lease offers both themselves and their tenants. This will give the owner and the tenants the ability to “break” the lease at any time they need.

  • No More stress about bad tenants: There is nothing worse than placing a bad tenant in your rental property. Without being tied to your typical 12-month lease, you are not required to keep them any longer than you want to. You can easily get rid of them by providing them with a 30 or 60-day non-renewal notice.

 

  • Premium Rent: Many renters are aware that choosing to go with month-to-month leases means that the rental rate will be higher each month compared to what it would be in a 12 month leased property. The premium rental rate will typically offset any cost that is occurred from changing the unit from one tenant to the next.


Cons

  • Higher turnover rate: When you have month-to-month renters you potentially could have a new renter each month. This means between each tenant you will need to get the unit ready. As we discussed above, the higher rent rate should cover these costs, however, there is always the chance that a ternate could completely destroy the property in the short time they are there. This could potentially mean paying for carpet replacement and full paint jobs versus touch-ups.

 

  • Difficulty placing new tenants: Because previous tenants only require a 30-day notice before leaving this could become a challenge when finding a new tenant to move in right away, which may mean you go a month or two without that income coming in.

 

  • More wear and tear: If you are constantly moving tenants in and out of the property, there will likely be more dings on the walls and floor from constantly moving things in and out.

 

Ultimately, owning rental property is a lot of work and full of tough decisions. Plus, Drafting, and enforcing a lease agreement can be challenging for even the most experienced property owner, regardless of whether you opt for a month-to-month or yearlong lease agreement.


There are pros and cons to both a month-to-month and a 12-month long lease agreement for your rental property, and what will work best truly depends on your needs as a property owner. However, self-managing your property does not have to be an added stress to leasing your rental.


If you are looking for guidance or need help drafting the perfect lease agreements for your month-to-month tenants or yearlong ones, contact All County Property Management Group today!

Why Landlords Shouldn’t Try to Manage Their Own Properties

Choosing to get started in the rental property industry can be an exciting time! There is so much that goes into this decision and a considerable amount of time dedicated to getting the property and business up and running.


You may be thinking that you can handle it all on your own. You may be saying you will have complete control over everything that takes place at the rental property. You probably think you will have constant contact with your tenants and have a little more cash flow by not hiring a property management company, right? 

Wrong! Managing your property on your own is NOT the best option!

We are going to discuss the reasons why you should NOT attempt to manage your own investment properties, and how handing over the reins to experts will ultimately save you time and money!


All County has the expertise.

The ins and outs of property management can be tricky. And without knowing the laws and how the whole process works you could run the risk of:

  • Hiring fly by night vendors to make repairs
  • Using ineffective advertising techniques
  • Violate fair housing laws
  • Improperly screen potential tenants
  • Implement poor rent collection policies

 

Property management is a business.

As your number of properties increases so do your responsibilities. Some aspects of your life may need to be placed on the back burner such as your job, family, social life, free time, etc… Are you willing to adjust your priorities?

 

Customer service makes a difference.

Customer service is a vital component in gaining and retaining residents.  If you are not the type of person who wants to deal with the headaches that come with evictions, complaints, and maintenance requests, you should not manage your own rental properties.

 

More Convincing 

For those of you that are still hesitant about handing over the work to a property management company:

  • The location of your properties span far and wide, requiring extensive travel commitments
  • The condition of your property is not pristine, which means repair requests may be regular and often-occurring
  • You are unsure how to add extra curb appeal to your properties to attract high-quality tenants
  • You don’t know how to draft legally compliant lease agreements

 

Altogether, hiring a property management company such as All County Property Management Group to manage your DFW rental properties far outweighs the benefits that come with managing properties on your own.

In addition, services such as tenant screening, vacancy advertisement, lease drafting, and round-the-clock emergency maintenance line, plus in-depth knowledge of the DFW market. This and much more is what All County Property Management Group provides their property owners.