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Updated 12 months ago on . Most recent reply

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Jennifer Wong
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1-year lease or month to month?

Jennifer Wong
Posted

Bought my first property: end unit condo class A and looking for first tenant.  My cousin who has 3 rental properties manages his own units and has all rental agreements on month to month and has all long-term tenants. His reasoning: easier eviction should tenant default.  Knowing the rental increase in California is regulated, I am not intending on raising the rent for at least a year if at all.  Does is make sense to structure rental agreement as MTM or 1-year lease?? 

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2,166
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Joe Homs
  • Flipper
  • Mission Viejo, CA
1,112
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Joe Homs
  • Flipper
  • Mission Viejo, CA
Replied

@Jennifer Wong  I have changed my leases to 11 months to avoid locking them in as permanent tenants after 1 year.  If there are any issues with the tenant during this time you can evict easier.  Most tenants may not accept a month to month lease.

Good Investing...

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