Disadvantages of month-to-month rental arrangements

1 Reply

I originally had a 1 year lease with my tenant. But her inconsistency with providing her rent on time, led me to allow the lease to expire and move our arrangement on a month-to-month payment arrangements.  Is there a disadvantage to a month to month rental arrangement?  And should the tenant be notified in writing that the arrangement has changed?  The original lease states that  

"Any holding over after the expiration of this Agreement, with the consent of the Owner/Agent, shall be construed as a MONTH-TO-MONTH TENANCY with the terms of this Agreement continuing to be applicable until either party shall terminate the Agreement by giving the other party THIRTY (30) DAYS WRITTEN NOTICE."

You don't have to tell them in writing again since you already did in the original lease.

Many of my leases do this as well.  It depends on the type of rental and on the location, in my opinion. In lower income areas, the tenants tend to not have many assets so they'll pretty much leave when they want to leave, so you might as well make it month-to-month. It just makes it simpler, keeps people happy, and there are little to no downsides.

I've seen people have success (especially with higher end rentals) to lock tenents into a full year lease with a reduced rate and do a regular rate for month-to-month. That also gives you a little bit of insight into tenant intent (like how long they plan to stay). Anyway, hope this info helps!

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