1 year lease with option to cancel on 30 days notice?

1 year lease with option to cancel on 30 days notice?

Member since 2018 · 45 posts · 0 votes
Can I write a lease with a 30 day option to cancel if the tenant is problematic? I’m in CA if that makes a difference. I had a bad last tenant who was butting heads with the HOA & it was a lot of headaches for me. My preference is to provide the tenant & me with the “security” of a year term, but have the option to move on if they’re a problem. Thanks for any input!
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Investor · Louisville, KY · Member since 2017 · 199 posts · 253 votes
7y

If you and the tenant can cancel with a 30 day notice you can make that lease for a century but it is actually just a month to month lease.

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  • Investor · Louisville, KY · Member since 2017 · 199 posts · 253 votes
    7y

    If you and the tenant can cancel with a 30 day notice you can make that lease for a century but it is actually just a month to month lease.

  • Rockaway, NJ · Member since 2016 · 2k+ posts · 2k+ votes
    7y

    Its essentially a month to month lease with a 12 month rent guarantee at that point.

  • Member since 2018 · 45 posts · 0 votes
    7y

    Got you - but it sounds like it can be done.

  • Realtor · PInellas County Largo, FL · Member since 2016 · 902 posts · 810 votes
    7y

    Since that's just a month-to-month lease, I would just write it that way -- there's no security of having a year lease if there's no penalty to cancel.

  • Chad HalePro Member
    Property Manager / Investor · San Jose, CA · Member since 2013 · 779 posts · 301 votes
    7y

    Write it as a month to month lease.  What most/a lot of tenants are concerned about is a rent increase within the first year.  So include an addendum specifying no rent increases for 12 months.

  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    7y

    @Alan Bosca Let me see if I can explain it a little more clearly.

    When a tenant is under a one-year lease, you can't make changes to it without both parties agreeing. If you say it's a one-year lease then you contradict yourself by saying either party can give 30 days notice. I doubt that would fly in court, particularly in a liberal state like California.

    What you want is a month-to-month lease. You can't have "stability" of a long lease and the "freedom" to get rid of the tenant easily. Choose which is more important.

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  • Member since 2016 · 13k+ posts · 12k+ votes
    7y

    The lease you are proposing would be a violation of state landlord tenant regulations and will not hold up in court. State codes trump lease agreements.

    M2M are the best option for leases giving the landlord full control over their investment. Term leases put tenant in control of property and are the primary reason landlords are forced to do evictions.

  • Corby GoadeBusiness Member
    Investor · Boise, ID · Member since 2014 · 3k+ posts · 3k+ votes
    7y

    You could, as stated above, just have a month to month lease. However, it sounds like you should spend some time and energy reviewing your screening and move in processes. That should solve your problem. A month to month lease is a defensive move, you should put yourself in a position where you are not operating in that mode. 

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