Filling a vacancy is often one of the most stressful parts of a landlord’s job. You have to decide what to charge for rent, what rules to set in place, and, often most importantly, the duration of the lease. Here are a few things to consider before deciding whether you will use a fixed-term lease or a month-to-month lease.
- Who are your potential tenants?
There are a few situations in which a month-to-month lease might be more beneficial for both parties than a fixed-term lease. Students, military families, and those traveling for business will likely be more comfortable with a month-to-month arrangement because they are more likely to need to relocate on short notice. Month-to-month leases can serve as a safeguard when potential residents are less financially stable because the landlord will have more flexibility to evict if the residents cease to make payments. In these situations, however, please note that Keyrenter Property Management has a tenant screening process, which can help you minimize evictions by a significant margin.
- How long are you planning on keeping the rental property?
If you have been considering selling your property, a month-to-month lease will allow you to bring in income while still maintaining the flexibility to make other decisions regarding the property.
- Will you have to fill a vacancy during a slow month?
Though month-to-month leases increase the flexibility for the landlord, they also increase the flexibility for the tenant. In most cases, a tenant need only give 30 days’ notice before moving out, which may leave you trying to fill a vacancy at a, particularly inconvenient time.
- Have the rental rates been fluctuating in the area?
If the rental rates have been increasing in the area, a month-to-month lease will allow you to raise the rent in accordance with the market rates. Furthermore, if there are any other changes you need to make in the rental agreement, a month-to-month lease will allow you to do so much more quickly.
- Contact Keyrenter Property Management in Provo
There are definitely pros and cons to using a month-to-month lease instead of a fixed-term agreement, and it can be a difficult decision to make. If you need further guidance, Keyrenter Property Management in Provo can help you find the lease agreement that’s right for you.