Are There Any Benefits to a Month-to-Month Rental Agreement for My Rental Property?

The vast majority of landlords prefer fixed-period leases. There is more security for a landlord when a tenant signs a fixed-period lease, and long-term leases can help relieve a landlord's stress about

However, there are definite benefits to offering month-to-month leases. Here are just a few:

1. You can attract more tenants. Many prospective tenants do not want to be tied to a long lease. A month-to-month rental agreement is much more attractive to first-time renters, college students, renters who may be transferred or travel extensively, and renters who just prefer avoiding a long-term commitment. Although this may mean a higher rate of tenant turnover, you may reduce vacancy rates by catering to this type of tenant.

2. It is easier to identify problem tenants and take action quickly. Without a long-term lease, getting rid of a problem tenant is much easier. In most states, all you need to do to terminate a month-to-month agreement is give written notice (usually 30 days). (Note, however, that some local laws prevent evictions without good causes.)