For Large Multi Families; Resign leases or go Month to Month?

[Nicholas Lohr]

I know this question has been asked a bunch on the forums but I can't find any that are specifically for large commercial multi families. (5 or more units)

What are the pros / cons of re-signing the tenants or letting them go month to month?  

Anything to be aware of that residential investors don't have to worry about?

[Bjorn Ahlblad]

@Nicholas Lohr When we had tenants in California they were on leases and we renewed them each year for another year. Now that we live in Washington state our tenants are all MTM from day one. At first it felt vulnerable, however we soon realized we could get them out with a simple 30 day non renewal notice, or raise rents anytime also with a 30 note. 

Tenants are free to go by giving us a 30 note so there is no testy discussion about how long is left on the lease. Generally tenants will go when they go anyway so what's the worry? 

Leases can be a real liability if you are buying MF apartment buildings; they will keep you from doing timely rehabs to reposition and raise rents, you will have to wait till the leases are over. I have a 12 unit and duplexes; the tenants are all MTM.