Month to month or sign a rental agreement

[Maria Luna]

Hello everybody, When you guys are getting ready to place a new tenant what do you guys prefer, contract or moth to month? This is my first time renting out one of my houses and my lawyer recommended that I do month to mont, Instead of 6 months or one year lease. She said that if I end-up with a bad tenant is easier to get them out, then if I had a rental agreement.

[Thomas S.]

I am a major supporter of the value in M2M leases. I thoroughly screen all applicants as every landlord should do regardless of lease choice. All my tenants are on M2M from day one.

Landlords are turning their investment property over to total strangers that have no inherent commitment to their landlord regardless of a lease. When they need or choose to leave they will leave.

What I have learned is that good tenants on M2M leases will be much more forthcoming, than a tennat on term, when they are contemplating moving. I get plenty of notice and rarely experience a vacancy. New tenants are usually found before the old tenants leave. When breaking a lease tenants rarely give any notice. If they leave at the end of their term lease it would be no different that leaving on a M2M lease cost wise for a landlord. The length of a tenants lease rarely has any bearing.

Additionally, when screening, a bad tennat will usually not sign a M2M lease knowing they will likely be terminated. This is a additional screening tool.

In my opinion M2M has all the upsides advantages of being in full control of your investment property with no down sides. A tenants life is not governed by a lease.