There are numerous ways to provide flexibility to your tenants, whether through shorter lease terms, additional amenities, or discounted rental rates. One of the most popular methods to accommodate tenants’ renting preferences while serving your interests is offering month-to-month leases.
Month-to-month rental agreements are ideal for tenants who are frequently on the move or for landlords seeking greater flexibility with their properties. In this blog, experts from our property management company explore the advantages of month-to-month leases and situations where offering them might be beneficial.
What Is a Month-to-Month Lease? | Property Management Company
When renting your property, you can offer fixed-term leases, like six or twelve months, or choose a month-to-month lease. Both landlords and property management companies need to understand the advantages and disadvantages of each type of lease.
A month-to-month lease is an agreement between a landlord and a tenant on a month-to-month basis until either party decides to end it. Usually, the landlord or the tenant must give a 30-day notice if they want to terminate the agreement.
Although month-to-month leases are commonly used to extend existing lease agreements, they can also be signed from the beginning. There are various reasons why a landlord might choose to offer a month-to-month lease. Let’s explore some of those reasons.
Why Offer a Month-to-Month Lease?
There are several reasons why landlords may prefer to offer month-to-month leases instead of longer-term contracts. While some people appreciate the predictability of fixed-term leases, others value the flexibility that month-to-month leases provide.
This type of lease agreement offers flexibility for both landlords and tenants. Tenants can move out with relatively short notice, usually 30 days. Similarly, landlords can adjust rental terms or terminate the lease with similar notice.
A month-to-month lease could be an excellent option for landlords who want to accommodate tenants’ short-term needs while maintaining flexibility in adjusting rates and terms.
Benefits of Month-to-Month Leases | Property Management Company
Month-to-month leases offer flexibility for landlords and tenants seeking short-term solutions. They are ideal if your tenant is looking for temporary accommodation or if you plan on selling your property soon.
This allows you to generate income from your properties without committing to a long-term lease. Here are some additional benefits of month-to-month leases:
Automatic Renewals:
Month-to-month leases often come with automatic renewals, ensuring continuity for both parties without renegotiating terms each month.
Flexible End Dates:
Unlike fixed-term leases with predetermined expiration dates, month-to-month leases offer flexibility in choosing end dates, allowing tenants and landlords to terminate the lease at the end of any month.
Ability to Adjust Rent Prices:
Landlords can adjust rent prices more frequently with month-to-month leases, enabling them to adapt to market conditions or property values.
Landlord’s Right to Terminate Lease:
Landlords can terminate a month-to-month lease with proper notice, providing more control over the property’s future.
Retain Good Tenants:
Landlords can offer month-to-month leases to reliable tenants not ready to commit to a fixed-term lease, helping retain valuable tenants until they are prepared to sign a longer lease or move out.
If you’re looking for a property management company that can help you by sharing valuable insights about the real estate scene, then Scott Properties of the Midlands is here to help.
Contact us today to learn more.