Should I provide long term lease or keep it month to month?

Question

My tenant's lease is expiring soon. Should I keep the rent term as month to month or should I have them sign up for a long term lease?What would be more favorable for me as a landlord with governments creating more tenant friendly conditions (BP link on this discussion below)

https://www.biggerpockets.com/topics/832738

Appreciate your inputs.

https://www.biggerpockets.com/topics/832738

Appreciate your inputs.

Nathan Gesner · Answer

There's no right or wrong answer. It could depend on your market, your Landlord-Tenant laws, the court system, your policies and procedures, how well you enforce your policies and procedures, how creative you are with your leases, and many other factors.

My market works great for one-year leases. If anyone wants month-to-month, I charge them an extra 25% rent and they pay it. When they renew after one year, I hit them with an automatic increase of 3% that ensures I'm always keeping up with the market without having to put much thought into it. The one-year lease keeps me focused on scheduled inspections. It provides me with stability because I can project when most of my leases will be expiring (I manage 350 units).

There are people in other markets, particularly on the coasts, where a month-to-month makes more sense. you'll have to analyze your situation, consider all factors, and choose which way to go.

Bjorn Ahlblad · Answer

All my tenants are MTM; it keeps them on their toes. Term leases offer them security at my expense.

Matt Ziegler · Answer

The choice is yours..long term lease gives you, and the tenant the feeling of security.

MTM gives you both more flexibility.

Which is more important to you both?

Kirk R. · Answer

Fan of Month to Month. They don't want to be there, they should leave. I don't want them to be there, they should leave.

Should I provide long term lease or keep it month to month?

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