As the property owner/manager of an apartment complex, you have a lot to consider regarding your leasing agreement. In addition to the standard safety and liability clauses and the decision of whether or not to allow your tenants to have pets, you will also need to consider whether or not to offer your tenants month-to-month leases. This decision is completely yours to make, as it can vary from complex to complex. That being said, you may be on the fence about whether or not month-to-month leases are right for you, and that’s why, in today’s post, we’ve provided you with a few pros and cons to consider before you make your final decision.
Managing an apartment complex or rental property can take a lot of time that you may not have, especially if you have another job on the side. Luckily, at Minnix Property Management, we offer professional property management services to property owners and managers throughout West Texas. We can provide you with the high-quality assistance you desire so that you can take some of the more tedious tasks off your plate. Explore our website to learn more about our professional property management services and give us a call to get started today!
Pro: You Can Increase the Cost of Rent
One of the main concerns of offering month-to-month leases is that you won’t be able to make enough money off those tenants. However, with month-to-month leases, you have the option of increasing your rent for tenants who choose that option. Raising the rent will allow you to accommodate for any necessary expenses such as cleaning and maintenance once the tenant moves out, and it can also make long-term leases more appealing to tenants who are on the fence about how long they want to stay.
Con: Lack of Stability With Tenants
A benefit of not offering month-to-month leases is that you will have more stability with your tenants. If you have a constant flow of tenants who are only renting from month-to-month, it can make it difficult for you to keep trying to find new tenants to fill those spots. A benefit of offering long-term leases is that once you have a tenant in an apartment, they will be there for at least a year before you have to find someone new to take their spot.
Pro: It’s Easier to Make Policy Changes and Upgrades
As the years go by, you may find that you need to make necessary upgrades to the apartments in your building, or you may decide that you want a reputation as one of the more upscale complexes in the area. Regardless of the reason, trying to get all of the renovations done in a reasonable amount of time can be difficult with long-term tenants, especially if they keep re-signing their lease. However, with month-to-month leases, you’ll have more freedom to make upgrades, as well as change lease policies without having to worry about your tenants getting upset. For example, if you’ve been wanting to replace the flooring in your apartments and make a change to the lease agreement about pets, all you have to do is wait for your short-term tenant to leave. Before a new tenant moves in, you’ll be able to make the necessary changes without bothering them or making a change that disrupts their life.
Con: Not Ideal for Long-Term Tenants
If you are considering only offering month-to-month leases, you may want to consider how it will affect long-term tenants. While there may be tenants who are willing to renew their lease every month or pay for a few months upfront, there may be other tenants who are looking for a more stable living situation. Instead of strictly offering month-to-month leases, offer it as an option for those who need it in addition to longer-term leases so that you can keep quality tenants who want to stay for an entire year or longer.
Pro: You Can Ask a Tenant to Leave
With long-term leases, you may come across a tenant who is willing to lease for at least a year, but they aren’t the best tenant. Unfortunately, depending on what state you live in, you aren’t able to ask an unfavorable tenant to leave. However, if the tenant is only leasing their apartment on a month-to-month basis, there are some states that only require you to give them notice that they must leave only a month in advance. This gives you the power to pick and choose high-quality tenants that you want to keep around.
Want to Know More?
At Minnix Property Management, our goal is to provide property owners and managers with the right tools to manage their rental properties in an efficient manner. We offer professional property management services including rent collection, maintenance request management, and more. Make your life a little easier so that you can focus on running your business when you work with Minnix Property Management of West Texas today!