Tenants 1 year lease is almost up. They made payments every month but were typically a week late. Then we got asked the question, “will you consider a month to month lease”? The reason we got asked this is because since then the couple has separated and the guy doesn’t know if he can afford the payments every month. They did not destroy the house. Still in great condition. What are your thoughts on month to month leases? Is it a disaster waiting to happen?
Reevaluate him alone just as you would a new tenant. If he fits your requirements, fine. If not, move on. A system only works if you let the system work. Good luck!
@Melissa J. I don’t mind mtm leases with a tenant I already know. Plus, many landlords will only do MTM leases.
The only real downside is if they decide to leave Nov 30, you might have a hard time re-renting... but not impossible.
If they’ve been good tenants (and you now can expect the rent to be late), I wouldn’t say no. You may want to incentivize the tenant to pay on time either by charging late fees if you haven’t already or increasing them. Or if it works for you (and the tenant) change the rent due date to the 15th with a higher late fee. You have options!
I only do MTM leases with my rental. A lot of rentals here have a 1 year lease that then convert to MTM. So I don't see your objection to that. You don't want to lock an iffy tenant in a long term lease - with MTM you don't have to evict for non-payment, just give 30 days notice that you want them out.
Great, thank you everyone for your input and advice! Much appreciated. Tenants have always resigned a new 1 year lease or have moved out once lease was up. Still fairly new, and we are learning! Will consider MTM.
No, no, and no!
If they are always a week late, and you allow it, then you are setting yourself up for future problems. They will have a personal crisis and want to pay two or three weeks late. Or it will be their last month and they won't pay rent at all, expecting you to use the deposit.
Tenants that violate the lease are not "good" tenants and you should not renew with them or negotiate changes to the lease. I would not allow them to convert to a month-to-month, nor would I renew them for an additional year. Get rid of them and find a tenant that pays on time and treats you and your property with respect.