Lease term month to month

[Eric Lahoda]

What is your opinion or experience by starting a tenant with a month-to-month lease instead of a full year term?

I have concerns over a tenant prospect and I consider ending a lease and easier option than evicting. Let’s assume there are no better choices of prospects.

[Kevin Sobilo]

@Eric Lahoda, for me it would depend on the class of the rental.

If you have nicer rentals A thru C+, you can attract good tenants and good tenants generally prefer stability. They work hard to have choices in life. They don't want to worry about getting hassled or ousted mid way through a school year for example. I always consider the value-proposition I offer nicer rentals because I want to attract and KEEP good tenants. Limiting vacancy/turnover is a big difference when it comes to the final numbers.

If you have lower class rentals C-/D class then you might feel you need to be able to pressure tenants to keep them in line and the ability to non-renew them could be a benefit.

On my rentals which are generally C+ to B class I have never regretted giving a 1 year lease since the most common reason to oust someone is nonpayment and that is just as easy in my state with a lease.