Month to month vs year lease or 6m lease

[Susan Clark]

I have property in WESTERN NY. My tenant of one year is asking to go to a mo th to month lease. I know she’s wanting to move. Wht are pros and cons to 1yr leases and month to month. I’m leaning towards a 6months lease if ThTs even allowed. What’s your experience.

[Nathan Gesner]

Originally posted by @Susan Clark:

I’d love to hear more detail about early lease dismissal.

I sign them on a one-year lease. If they want to leave early, they have to pay do three things:

1. Submit notice 30 days prior to departure OR pay rent for 30 days whether they occupy or not.
2. Pay a termination fee equal to one month of rent. This is paid on the day they give notice, not at a later date and certainly not after they leave. Do not use the security deposit for this!
3. Allow us to market and show the rental during their last 30 days.

In most cases, we find a new renter before the original renter leaves. This means we have almost no vacancy and we received an extra month of rent as the termination fee. In over 80% of the cases, the Landlord makes more money.

What if the tenant refuses to pay the fee? Just follow the law and hold them accountable for rent, utilities, and other responsibilities until a new tenant is placed. If they move out and it takes you 30 days to find a new renter, charge the original renter for 30 days of rent.

It's rare that we lose money when a tenant breaks their lease early.