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Month-to-Month Leases or Long-Term Leases

A lot of features and options are what influences the decision of your tenants to pick your rental. What do you offer that other rentals in the area don’t offer? How can you stand out and get the best quality tenants? One way to do this is to offer flexible lease terms. However, you need to consider the pros and cons of each kind:

Month-to-month lease:


  • Can easily get rid of a difficult tenant at the month mark
  • You can “try out” different types of tenants to see who you want to live there
  • You can change the rent amount to compensate for the turnover rate


  • Might not get the most stable of tenants
  • You must constantly be looking to fill a vacancy in case your tenant leaves
  • It may be hard to find tenants willing to deal with a month-to-month lease

12-month lease:


  • There is a stableness to your tenants – you don’t have to worry about vacancies quite as often
  • Less time cleaning up after tenants move out
  • Build a relationship with your tenants


  • You can’t get rid of your difficult tenant for a much longer time
  • Can’t fluctuate rent once your tenant has signed the lease
  • Higher chance of damage happening to the property by the tenant

You might also consider a combination of these leases as well. For example, if you have a tenant that would like to move out two months after her 12-month lease is up, but has nowhere to stay in between that time, you can offer a slightly higher rate for her to live in your rental until then. Working with your tenant’s schedules and being understanding to their situations will follow your business for a long time. A good reputation will lend to more/better quality renters.

With years of experience dealing with rentals across the New Jersey and New York area, CAB Group can offer you advice on what type of lease would be the best for your rental. Just give us a call!

Posted by: cabgroup on June 28, 2018
Posted in: Uncategorized