Converting from month-to-month to 12-month lease

[Claire McGuire]

I have a SFR that is currently rented on a month-to-month lease. Originally it was a 12mo lease, and reverted to month-to-month after the first year. My tenants have been there for nearly 2 years, but they've told me they want to move out soon to be closer to a sick relative. This is my first rental (bought 2 years ago) and I regretted the structure of the lease almost immediately because I realized how seasonal the rental market is in my area. If they don't move out in the summer, the place may sit vacant until the following spring.

Until now, I haven't wanted to ask them to sign a new 1-year lease because they're good tenants and I haven't wanted to do anything that would push them to move out. But since they're planning to move out anyway, I'd like to force the issue a little so the timing will be beneficial to me.

Can I give them 60 days written notice, telling them they need to either be out June 1 or sign a new 1-year lease? I was thinking of telling them verbally first (before April 1) and then putting it in writing on April 1.

Does anybody have advice about how to handle this? I know I have a lot to learn, and thanks for any help!

[Susan M.]

I think  you need to be sure that they are legally Month-To-Month tenants by whatever laws your state allows when a lease term expires.  Assuming you are rightly allowed to convert them to M2M, the next thing you need to find is what the required notice is on a M2M agreement, or what your lease says about notice.  Assuming it's all good, then yes, I think you could give them the proper notice and tell them YOU are terminating their M2M agreement. 

However, I wouldn't.  Things happen, situations change all the time.  Whatever it is they think they might be moving for may never happen.  They are good tenants and could continue being good tenants for years to come.  I'd just wait and see.  I'm in Ohio so I know winter rentals are more difficult, but they're not impossible.  I got one of my best tenants in January.  I would just wait it out.