Pros and Cons of Month to Month lease vs. Long Term leases

[Account Closed]

What % of you all only do month to month leases and why? 

Here's my situation below. 

I have a tenant who's trying to build credit. He's not the best, but we value his cash flow. 

I'm considering renewing his lease on a month to month term versus having him sign a long-term lease. The lease I inherited didn't capture a security deposit and there wasn't a pre-lease end penalty. 

I'm dropping by tomorrow to do an inspection and depending on the condition of the home I may consider a month to month lease w/ minimal security deposit

Here is my rational

Pros - 

• Canceling the lease would be easier for me if he is on a month to month
• He feels he has more flexibility.

Cons

• If he was on a long-term lease, there could be some recourse if he vacates early.  But it would the classic squeezing "blood from a turnip" scenario

[Megan Phillips]

In VT 60-day notice of non-renewal is required for landlords to end a month to month lease (or not renew a long term lease), I think my lease requests 60 days for tenant also (I think legally they only need 30 day notice), so it's whatever is state specific and what is in your lease. 

Most of my lease comes from Brandon Turner's Book On Managing Rental Properties (TONS of extras for documents, etc) and I just added what I wanted and also had an attorney make sure it wasn't over stepping VT regulations.