Should You Allow Your Tenant to Rent Month-to-Month?

You may find yourself wondering what type of lease agreement you should offer your renters. Is a shorter-term lease (month-to-month lease) the best fit for you and your investment?
To make the right decision, it’s helpful to know the advantages and disadvantages. 

What is a month-to-month lease agreement?
A month-to-month lease agreement is a type of lease where your tenant will rent for 30 days and have the option to re-extend their stay each month.
If you choose to no longer allow the tenant to continue renewing their lease each month you will need to provide a 30 day notice. A month-to-month lease agreement automatically renews each month unless the arrangement is discontinued by the tenant or landlord.

Advantages of a month-to-month lease agreement:
1. Provides a flexible housing period for tenants
2. Adjustable rent pricing
3. Flexible rent policies
4. Rapid tenant replacement

Disadvantages of a month-to-month lease:
1. Income instability
2. Increased marketing pressure
3. Increased tenant screening efforts

Determining whether or not to offer your tenants a month-to-month lease agreement is up to you as a landlord. Before making this decision talk to a professional property management company, like All County Property Management Group ! To find out more information about our services please visit here!