Rental Property Investor · Jonesboro, AR · Member since 2017 · 19 posts · 2 votes
I have a current tenant and their lease has expired. The lease expired in November and we’ve discussed them paying month to month. Should I have the tenant sign a new lease? Is it too late? My current lease allows for a 30 day notice when my tenant wants to move out.
In my state if a person is not on a lease they are referred to as “tenant at will”. Under that status a tenant has a lot more rights in their favor. On my leases, I have wording that says something to the effect, “if this lease expires, tenant may stay on a month to month basis but still subject to the terms of the lease until such time a new lease is signed.” So the specific laws to your state come in to play in comparison to what is written in your lease.
In my state if a person is not on a lease they are referred to as “tenant at will”. Under that status a tenant has a lot more rights in their favor. On my leases, I have wording that says something to the effect, “if this lease expires, tenant may stay on a month to month basis but still subject to the terms of the lease until such time a new lease is signed.” So the specific laws to your state come in to play in comparison to what is written in your lease.
You can sign a new lease any time by giving them 30 days notice, just like they can give 30 days notice to vacate. I don't mind M2M during the winter because I'd rather not face a vacancy. I usually allow M2M until the end of June and then I want a signed lease that carries through winter.
Better remind them to make a decision whether to stay or not right away! LOL
I have always allowed mine to quietly roll into a m-m if all is well. I have a bunch of 10yr+ tenants because I have never forced them or reminded them to make a decision. Remind them if you want to, but vacancy sucks.
You may find your lease automatically became M2M under the original lease terms depending on your state regulations. The lease will continue indefinably unless you have them sign a new lease.
It is probably time you learned your stste regulations if you have not done so already. It is your responsibility to know the law.
I do everything I can to avoid a winter vacancy, so I always take that in to account. My lease has a clause that tenants pay a premium to go month to month- typically around 10%, so I don't mind it so much. At 10% a year of M2M pays for more than a month of vacancy, and more often than not, I come out ahead.