Why have a lease if you might end up evicting?

Question

Hey gang, just wondering why have a lease in tenant friendly states, like Ny, Nj or Cali? If deadbeat tenats don't want to pay and break lease and you end up with an eviction, what's the point?

Joe Splitrock · Answer

@Cris Agui are you are confusing lease with lease term? You can have a lease with any term you want. It can be be a day, week, month, year, two years, etc. If you go without a lease, you still have a "lease" in the eyes of the law, but it is undefined or verbal. That is way more messy because the tenant can claim whatever terms they want. Then it becomes your word against theirs. Written lease keeps everyone honest.

Nathan Gesner · Answer

I've heard people claim it takes 4-6 months to evict in California but I've seen eviction attorneys that claim it takes them an average of 45 days. The reason it's so difficult for private Landlords to evict is because they don't know what they're doing. If you know the law and know the process, you should be able to evict much quicker.

If you have a good screening process and systems in place to nip problems in the bud, the odds of you needing to evict will be really low.

A one year lease is your best option. Month-to-month will not eliminate all the risk and magically enable you to remove tenants whenever you want.

Derek Carroll · Answer

@Cris Agui

Sounds like what you’re asking is why lock yourself in for a year lease if tenants might not pay anyway. Solution is month to month lease you can choose not to renew but you’ll still have to serve proper notice and if they holdover (don’t leave) you’ll have to formally evict anyway.

Quincy Lockett · Answer

@Cris Agui

All tenancies are presumed to be month to month in the absence of a ‘annual paper lease.’ I think what you’re conveying is, why put tenants on a paper lease in tenant friendly states? I agree with that sentiment because monthly tenancies yield landlords more control over the eviction process. The problem is that tenants intrinsically know this and most wont be attracted to a property that only offers an initial monthly lease.

With my properties I offer an annual lease initially. When it expires I allow it to default  to a monthly tenancy. Tenants typically accept that because moving is arduous.

Victor Robinson · Answer

@Cris Agui

Depending on the type of properties you have, proper screening with 1-yr leases would be best. And in that case, as others have said, the lease provides you with some protection and a general idea of when you should expect vacancy.

However, if you choose to invest in C-/D neighborhoods, that “protection” simply gives you ammo in a lengthy and costly eviction. In those neighborhoods, month-2-month leases from get-go could help avoid the hassle of evictions while still spelling out terms of agreement.

Bjorn Ahlblad · Answer

All my tenants are MTM and they all have leases-I want them to-I wrote the leases and they spell out the terms and conditions under which they can live/or not in my properties.

Cris Agui · Answer

Tnx, like David mention extra protection, was just wondering cause if eviction could take mths cause they ain't going to pay then what would it matter, its not like I would ever see that money anyway u know.

Cris Agui · Answer

Mmm, good point specially have proof of $$ was just thinking bout the eviction, I mean if they just didn't pay and eviction could drag for 4-6 mths then what's the point didn't think bout how u put it, tnx.

Marci Stein · Answer

So you know when you have a legal right to get  them out. It protects

you.

It’s like any agreement, best to

clearly spell out the terms into

which you’re entering .

David Stone · Answer

Because... it spells out the right for the tenant to live in such property + the rules for living in such property + what happens if those rules are broken. If you verbally agree rent is $1500 a month and tenant pays $500 and promises to pay the rest later, how do you prove what your monthly rent was? You could pretty much apply that example to any paragraph within the lease.

Why have a lease if you might end up evicting?

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