Month to month or Year lease?

[Gustavo Mendoza]

Hi everybody. I have a 3bd 2bh househack in Merced, CA. I went through Zillow to list the property and do all the screening. A prospect asked me if i was doing a month to month, or lease. What are the pros and cons of going through a year lease vs month to month? What do you guys consider to be a better option? Thanks in advance for your cooperation? 

[Drew Sygit]

@Gustavo Mendoza it really depends on the tenant and state/local laws.

Class A tenants, usually having 680+ credit scores, can be held accountable for a 12 month lease.

Most Class B tenants, 620-680 scores, can also.

With Class C tenants, under 620 scores, many won't care if a lease is 12 months or MTM, they will move when they please. So, many landlords go MTM with these types of tenants to make it easier to get rid of them.

State & local laws also come into play with their Notice and evictio requirements.