Shadow
Podcast

Ask Gerald: Written Lease or Month-to-Month Agreement, Which is Better?

Q: Is it better to have a written lease for a tenant or a month-to-month lease? Jason, Fort Wayne, Indiana

A: Great question for all the landlords out there also for renters. A month 2 month agreement gives landlord and a tenant more flexibility and if you’re a landlord that may work to your advantage or disadvantage. If you have a good tenant, ideally you’d want to try to lock them into as long a lease as possible. If you have a bad tenant, a month-to-month lease gives you more flexibility to get rid of them, but remember, a tenant can cancel a month-to-month agreement with 30 days notice also. Screening your tenants is a best practice for successful landlords that I strongly recommend-getting good tenants is more important than your lease terms. My suggestion to you would be to take a hybrid approach and start with a written lease that spells out all the terms, fees, deposits and due dates and when it expires allow the rental to revert to month-2-month agreement. . Thanks for your question, Jason, for more real estate tips, visit performanceproperty.com and check out my Performance Property you tube channel. I’m Gerald Lucas and I’ll see you again soon.

Short Sale Specifics

Get A Free Copy!

"Get a Free Copy of Our Short Sale Homeowners Guide!