Month to Month vs. Lease

[Dale Miller]

What are the pros and cons to these 2 types of rental agreements?

[Bjorn Ahlblad]

When we had renters in California they were on annual leases sometimes even 2 years. Then we bought rentals in Wa State where most have MTM leases. Largely it helps to offer your tenants what the market is offering. The differences sound like a bigger deal that they actually are. Tenants go when they go regardless of the lease duration. We have tenants in our building who have been there for 20+years on MTM leases.

We are comfortable offering MTM leases and we like how they favor the LL, at any time you can issue a 30 day notice of non-renewal, raise rents any time and we still get first and last months rent and a security deposit equal to one month's rent at lease signing.