To Lease or not to Lease

[Walter Fabiszewski]

I’m a Florida licensed Realtor and have a few customers who are investors that are listing their properties for sale and cashing out while the market is hot. I noticed that all of these landlords have tenants that are month to month rather than on a lease. They sign a one year lease, but the landlords don’t seem to be renewing them for years on end. At first I thought that they were just trying to keep it flexible in case they decided to sell, but upon review of the leases, it’s seems like they are going 2-4 years month-to-month. What does everyone think about this? I’ve always required my tenants to sign and renew one year leases (sometimes it’s a rent increase, sometimes without). Now I’m wondering if I should forego the security of a lease and let these tenants go month-to-month. The rental market is very competitive here in Broward County so I’m not concerned with tenants leaving or a long vacancy (most of my rentals are under market value). If I decide to sell, I would only have to give the tenant 15 days notice to vacate.