MTM rent rate is there a premium over a yearly lease rent rate?

[Sam Leon]

For those who are doing MTM leases, do you charge a premium over the yearly lease rent rate?  If so by what percentage?

My neighborhood is for the most part rentals are leased yearly.

I am near the end of a lease term with a tenant and am considering either a new yearly lease or switch to MTM.

If I renew a yearly lease I was not planning on raising the rent, but switch to MTM I am not sure.

[Marcia Maynard]

We charge the same monthly rate, whether on a lease or MTM agreement. We also charge a move-in fee (administrative), because there are extra costs and time involved in getting a new tenant moved in. 

We prefer MTM because it allows us greater flexibility if we want to force a move out for non-performance or if we want the property vacant for some other reason. We can then serve a 20-day "no cause" notice which can not be contested. Which is a fortunate thing about the landlord-tenant laws in our jurisdiction.  

We've thought about charging more for a tenant to be on a MTM agreement, but haven't.  I think the market would allow it, because some tenants don't want to lock themselves into a time frame set by the landlord, and might pay a premium for that. 

Most of our tenants stay long term regardless. Those who stay short term usually don't plan to stay short term, it's just that circumstances change for them and they move. They would move on their own time frame whether or not we had a lease, so the MTM just makes it easier for all us.