Whether to renew tenant’s one-year lease or go month-to-month is the question this week for Ask Landlord Hank. Remember Hank is not an attorney and is not offering legal advice. If you have a question for him please fill out his form below.
Dear Landlord Hank:
My tenants’ first year lease on my rental townhouse expires Oct 1, 2023.
Should I offer them a one-year lease renewal or switch them to month-to-month lease?
What are the pros and cons of yearly lease renewal vs month-to-month?
Dear Landlord Rome,
Let me tell you how I look at my rental properties and why I like one-year leases.
I see my rentals as a money tree. I take care of them with regular maintenance, respond to tenant issues promptly and act fairly with tenants and treat them with respect.
I like to have my money trees producing fruit (MONEY) every month, and I know if I have an annual tenant I can count on that money for every month of the coming year because I’ve taken time to do proper background screening of my tenants and I know they are “normal” people who pay their bills and will take care of my property.
If I have a tenant that has fulfilled a 12-month lease and can’t sign for another year due to possible job transfer or maybe they are building a new home and it’s not ready yet, etc., I will extend a lease on a month to month basis BUT I require 60 days notice of the tenants last day so that I have enough time to find a good quality replacement.
If you are thinking about selling the property you might want to go month-month. Just FYI, my longest lasting tenant moved in in 1998.
1000 East Avenue N.
Sarasota, Fl 34237
Each week I answer questions from landlords and property managers across the country in my “Dear Landlord Hank” blog in the digital magazine Rental Housing Journal. https://rentalhousingjournal.com/asklandlordhank/
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