Rental Agreement vs. Lease

[Danielle J.]

Hi BP! I'm purchasing my first multifamily property located in Redlands, CA. The property is nicely located near a university and the area generates a pretty decent selection of tenants. I've been reading about the pros and cons of having a rental agreement vs. a lease and I'm having difficulty determining which I prefer to use for tenants. I like the flexibility of having a rental agreement so that I can increase rents or modify the language of the agreement as needed. I also like the security provided by the lease option in reducing vacancy rates. However I believe that a tenant will leave when they want regardless of the consequence of breaking a contract.  With such a large pool of renter in the area, filling vacancies shouldn't be a problem, so I' m  leaning more towards rental agreements...what do you guys think? Which one works best in your business?

Also if anyone has suggestions for a solid rental agreement or lease form that adheres to CA law, please share.