Month to Month vs. Leases

[Jason Young]

New to the game and seriously considering purchasing a 5 family.  The current land lord has not been using leases, so the tenants are all month to month.  Curious what people think of this approach vs having year long leases in place.

[Jon Holdman]

I used to do year long leases.  Now I do only month to month.  A long lease binds the landlord more tightly than the tenant.  If the tenant wants to leave, they will.  in most cases you'll never see a penny other than the deposit.  OTOH, with a month to month they can give notice and leave on good terms.  Which usually results in a clean unit.  And if they're troublesome, but not easily evictable (e.g., long term guests, unauthorized pets, troubles with neighbors, etc.) the landlord can terminate the lease.  Then, if they refuse to leave, they're easier to evict.  

And, if they are troublesome, but not awful, and you choose to keep them, its your choice.  You're not stuck with someone you really want gone.