Landlords have a right to decide if they’ll accept month-to-month leases, and many don’t. Still, some do accept them and find them helpful in certain situations. Let’s take a look at the three benefits of month-to-month lease agreements for landlords.
With a month-to-month lease, the tenant or landlord can decide at the end of each monthly period whether or not to renew the lease. The benefit here is that if no one has changed their mind, the lease renews automatically. This makes it easier for the tenant, and of course, it also benefits the landlord since they don’t have to wonder if the rental will sit empty. The lease just continues until they or the tenant no longer want to renew it.
Less Notice Is Needed
When using the month-to-month lease agreement, only 30 days’ notice is legally needed for a landlord to let tenants know their time is up. In some states, it’s even less, at seven to 10 days. This is one of the benefits of month-to-month lease agreements for landlords because if a new tenant comes along and wants to move into the rental in a month, you’re only required to give the current tenant a month’s notice to get out. The apartment will always be full.
Allows for Extension
Let’s say a one-year lease is almost up, but the rental or housing market inventory is low, and your tenants have nowhere to go. You can offer a month-to-month lease so they can stay as long as they need until they find a new place. This way, since you know they intend to eventually leave, as the landlord, you can actively search for new tenants as the current ones stay on a month-to-month basis. If all goes well, the rental never sits empty.
Although the yearly lease is the most commonly used when renting, month-to-month leases are sometimes necessary and helpful. As we’ve gone over in this article, as a landlord, it’s worth considering the monthly option. You may see no current need for it, but it’s best to prepare should the need arise. And as a landlord, you can make your life and lease signings easier by using the services of a full-service property manager to take care of all of these things for you.
Excalibur Homes, voted “Best in Georgia,” offers leasing property management, so you don’t have to worry about leasing issues. We are a full-service property management company and can guide you through the pros and cons of month-to-month leases and more. Contact Excalibur Homes, and let’s discuss how we can improve your real estate investment lifestyle.