5 Reasons To Offer A Month-To-Month Lease
Property leasing is a lucrative business. Not only does it offer income for property owners, it is also a good passive income for people who wish to earn additional income on top of their day job salaries. If you want to take advantage of property lease, you must check your options, including short-term lease or monthly leases. If you are considering this strategy, you must know the 5 reasons to offer a month-to-month lease to see how it will work for you:
Flexible Lease Terms
Flexibility in lease terms is one of the primary reasons why monthly leases are beneficial for everyone. Not only does it benefit landlords, it is also beneficial for tenants. Some tenants look for temporary properties for rent as they look for jobs or other business opportunities. Renting a property on a monthly basis will make it easier for them to relocate in case they find the jobs that suit their preferences. They do not have to wait for the entire year of contract to pass before moving out as they can spend their time within the contract for a month and move on.
This convenience is also beneficial for landlords. The fact that they can have renters leaving as soon as possible will help them deal with repairs easily at cheap costs. Being able to repairs these damages earlier means lesser extent of damage and cheaper repairs than expected. There are still other flexible features that will work for lessors’ advantage.
Convenient Lease Term Changes and Conversion
There are some lessors who seem to have found the perfect tenants, which means they want to keep them in contract for a long time. As long as the tenants are fine with the long-term contracts, they can easily sign the new lease terms.
Lessors will find it easier to change lease term from monthly contracts to yearly contracts. This is due to the shorter transition period for the both tenants and renters to wait before they can sign the contract. Basically, lessors only need to change the lease period, add more lease details, and others and they can get into their business in no time.
No Complicated Ramifications of Breaking a Contract
Breaking a contract is common thing for lessors and tenants. With monthly leases, tenants and lessors won’t face serious ramifications in breaking their contracts. This is one of the reasons to offer a month-to-month lease that many lessors keep in mind and choose this strategy. Rather than breaking a contract right at the beginning of the lease period, they simply need to wait for the current month to pass and finally conduct the changes. Even if they need to compensate the tenant, the compensation is not as much compared to keeping them in long-term leases.
Easier to Increase Lease Rates
One of the reasons why lessors do not find property leases beneficial is because they cannot increase property lease rates instantly. Property values increase monthly and property owners cannot immediately increase the rental rates once their tenants are still in contract. They signed the contract for a specific rate and it will be a breach of contract once lessors decided to increase the rates in the middle of the contract, which will demand compensation for the tenant.
Another thing is the longer the tenant stay in the house, the harder it is for property owners to increase rates. Tenants will also contest about lease increase simply because they are “long-term tenants” and for relationship, they will ask to retain the property rental fee rather than making it beneficial for lessors.
Easier to Evict Tenants
While tenants report about horrible landlords, landlords also have their share of horrible tenants. Month-to-month leases allow landlords to evict their tenants easily because they simply need to wait for a month and finally evict them. They do not have to endure a year with horrible tenants and finally lease their places to tenants who are worthy of their houses and treat them as their own.
Property tenants and lessors will find monthly leases beneficial. Get to know these five reasons to offer a month-to-month lease and experience its benefits for you if you want to earn passive income that will give you more money on top of your regular salaries.