MTM to new lease

Member since 2025 · 4 posts · 4 votes

Hey all, some advice would be helpful today!

I bought my first rental last fall. Their leases expired and they went MTM. Great tenants so far. I am going to drop off a new lease for them. If they have been tenants here for a while, and have renewed lease previously, are the addendums necessary? In TX, it is recommended for Floodplain and Lead Paint.

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Drew SygitBusiness Member

Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes

1mo

It is a NEW LEASE, especially since you are the new landlord!

What signed disclosures do you have from them and how old are they?

[email protected]248-209-6824

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James JonesPro Member
Investor · Collierville, TN 38017 · Member since 2017 · 821 posts · 601 votes
1mo
Short answer: yes, attach them every time. Not a lawyer and not licensed in Texas, so confirm with a TX attorney or use current TAA forms - but the principle here is one worth internalizing early, because it'll save you from a whole category of mistakes.
Disclosures attach to the LEASE, not to the tenant. You're not re-disclosing because you doubt them or because they forgot - you're doing it because a new lease is a new contract, and the disclosure requirement runs with the document. The fact that they signed one two years ago does nothing for the agreement you're handing them Tuesday.
On lead paint specifically: that one's federal, not a Texas courtesy. If the house was built before 1978, the disclosure and the EPA pamphlet are required on every new lease, with the signed acknowledgment retained. Penalties for skipping it are genuinely disproportionate to how trivial the paperwork is - it's the cheapest compliance item in this entire business and the one people most often skip because the tenant is nice. Post-1978 construction, it doesn't apply.
On the flood notice: Texas requires landlord disclosure of flood risk and flood history before a lease is signed, and again, it's a per-lease item. Attach it.
The habit I'd build: keep one folder of your current addendum set, and every lease you ever hand anyone gets the entire stack, no case-by-case judgment. The moment you start deciding which disclosures a particular tenant "needs" is the moment you eventually get one wrong, and it'll be on the tenancy that goes bad - they always are.
One thing worth doing while you have this open, since you're converting month-to-month back to a term anyway: this is your annual checkpoint. Use it to reset rent to market if you're under, refresh a signed condition addendum, and confirm renter's insurance. Good tenants staying another year is the cheapest possible outcome for you - a turnover costs two to four months of rent all-in once you count vacancy, make-ready, and lease-up - so if they're genuinely great, a modest increase paired with something they'd value is usually the smarter trade than squeezing the maximum and risking a move.
Congratulations on year one, by the way. Bought a rental, kept good tenants, and now asking the boring compliance question before it bites you - that's a better first year than most.
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Michael K GallagherBusiness Member
Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
1mo
This is generally your chance to "start fresh" and do things by the book if there was anything missing previously or if you want to change anything about the relationship. Alos gives you the chance to get them on your prefered documents.
If they are solid tenants and you are planning to raise the rents we generally recommend bringing comps and setting the rent still under the market comps so they feel as they are still "getting a deal" compared to having to move. But it gets your rents closer to market without any vacancy.
[email protected]614-362-2231
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Drew SygitBusiness Member
Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
1mo
It is a NEW LEASE, especially since you are the new landlord!
What signed disclosures do you have from them and how old are they?
[email protected]248-209-6824
Logical Property Management4.9465 Reviews
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Richard F.
Honolulu, HI · Member since 2008 · 3k+ posts · 2k+ votes
1mo
If the old agreement was from prior owner, you should have your own complete agreement package for review and signing. You may have/want different terms or conditions that were not spelled out previously. In that case, they have a right to review prior to signing. Also, you should absolutely inspect the unit, inside and out, to determine current condition/age of elements as well as seeking out signs of water intrusion or damage from pests. Check under sinks, ceilings, closets, window sills and other areas for these signs. Check for safety issues, blocked electrical panel, extension cords being used semi-permanently, loose carpet and other tripping hazards, make sure stair treads and railings are secure, etc.
Then talk with the tenants to find out their intentions...maybe they plan to move next summer, or whatever. You should not be offering a renewal until all of this has been done, plus analysis of the current local rental market, and obtaining and updated rental application to confirm their financial situation. They may have had a job change or any other issues that affects the strength of their finances.
Why are they "great" tenants? Are they just friendly and pleasant, paying on time, or do you know for a fact that they are taking good care of YOUR property, inside and out, reporting all issues timely? Are you sure they are monitoring for leaks? Water is your biggest enemy as LL.
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Kyle MccawBusiness Member
Property Manager · Keller, TX · Member since 2011 · 1k+ posts · 1k+ votes
1mo
@Justin Kates
I’d still use the current lease and all applicable addendums. Just because they’ve signed them before doesn’t mean I’d start leaving documents out of a new lease. In Texas, some disclosures have specific requirements, so this isn’t an area where I’d try to simplify the paperwork.

I generally want good tenants on a term lease. If they don’t want to commit, that’s fine, but I’d price the MTM option higher to compensate the owner for the additional vacancy and planning risk. A tenant who wants flexibility should expect to pay something for that flexibility.

Great tenants are worth keeping, but predictable occupancy has value too.
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Jimmy LieuBusiness Member
Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
1mo
Quote from @Justin Kates:
Hey all, some advice would be helpful today!
I bought my first rental last fall. Their leases expired and they went MTM. Great tenants so far. I am going to drop off a new lease for them. If they have been tenants here for a while, and have renewed lease previously, are the addendums necessary? In TX, it is recommended for Floodplain and Lead Paint.
Great question, Justin! I’d treat the renewal as a good opportunity to make sure the lease file is complete rather than assuming the old addendums carry forward. Even with long-term tenants, I’d include any required disclosures or addendums that apply to the property, especially things like lead-based paint or flood-related notices. It keeps everything clear and documented for the new lease term. Since requirements can vary, it’s also worth confirming the current Texas rules or using an updated state-specific lease. A little extra paperwork upfront can prevent confusion later.
[email protected]614-300-7535
Jimmy Lieu, Red 1 Realty4.9121 Reviews
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Jim Johnson
Real Estate Agent · Memphis · Member since 2026 · 591 posts · 347 votes
1mo
If I’m having them sign a new lease, I’d include the applicable addendums and disclosures again rather than relying on what they signed with the old lease. Even though they’re existing tenants, I’d want the new lease package to stand on its own and have everything that currently applies to that property in one place. Especially with required disclosures, I’d rather have the documentation repeated than discover later that I was relying on paperwork tied to a prior lease.
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Patrick O'SullivanBusiness Member
Property Manager · Phoenix, AZ · Member since 2024 · 544 posts · 210 votes
1mo
Yes, treat it as a new lease and attach current addendums regardless of what they signed before. A new lease is a good opportunity to make sure the entire file is current and complete rather than relying on paperwork from a prior lease or owner. With required disclosures especially, a little extra paperwork now is much easier than dealing with a compliance issue later.

Since you're converting them from MTM back to a term lease anyway, this is also a good moment to check rent against the current market, do a walkthrough, and confirm renter's insurance is still active. Good tenants staying is the cheapest outcome you'll get as a landlord, but that doesn't mean skipping the paperwork or the checkup.
[email protected]480-795-7938
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Ronald RohdePro Member
Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
1mo
Texas attorney here. New lease, new disclosures. Docusign makes it trivial to add necessary pages. Tenant does not need to initial every page either.
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