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Month-to-month lease agreements provide both the landlord and the tenant with flexibility, but as with anything they also have some down sides

Pros for Tenants:

- Flexibility to move - one of the most common reasons for a tenant to sign a month to month or opt to go month to month is so they have the ability to move quickly.

- No specific end date - unlike a long term lease agreement, month to month leases allow you to give a normal (typically 30-60 day) notice and you aren’t burdened by lease break penalties

- You can (usually) switch to a long term lease -a lot of owners give the option to sign a longer term lease if plans change

- Can look for a home - this is often an ideal option for those looking to purchase or having something built but aren’t 100% sure when that will happen.

Cons for Tenants:

- Short Notice to End the Lease - Just as a tenant only has to give a normal notice (typically 30-60 days), that is all an owner has to give as well

- Fluctuating Rent Prices - landlords often charge a premium for a month to month lease due to the risk factor

Pros for Owners:

- Can Get Tenants Out Quickly - This gives owners the ability to give a normal notice to the tenant.

- Charge Higher Rent - Month to month leases are limited, so a lot of owners will charge a premium to allow this

- Keep quality tenants - Sometimes tenants request a month to month lease for whatever reason and landlords allow it to keep good quality tenants in their properties that are worth the risk

- Can Increase Rent - another benefit is you can increase rent with just a standard 30 day notice (instead of waiting until the end of the lease term).

Cons for Owners:

- Less stable/ lack of security - You are never really sure when the tenant will give their notice.

- Prepare for a vacancies - Since the tenant can give a notice at the end each month you always have to be prepared for it

Rental properties are a big investment, so making sure you are protecting your investment is a must! Here is a breakdown of what your landlord insurance can cover:

Property damage: This covers damage to the home itself and personal property due to fire, storm damage, theft, vandalism and tenant damage. Ideally, your landlord insurance will cover the replacement costs for your entire rental property in the event of a total loss.

Liability insurance: This coverage protects you against liability claims and lawsuits. Whether a tenant, visitor or even a trespasser is injured on your rental property, you could find yourself in a legal headache. Your liability insurance will help you cover these costs. These costs can include medical payments, legal fees and judgment or settlement costs. You will also be covered if you, as the landlord, are found responsible for another person’s property damage. For example, if you neglect to fix a leaking water pipe and mold damage destroys a tenant’s expensive collection of vintage albums, a liability claim can be filed against you by the tenant.

Loss of income: This insurance will help compensate you for lost income in the event that your rental property becomes uninhabitable due to a covered loss, such as a storm or fire. Your loss of income coverage, or “rental reimbursement,” will prevent you from losing the income you would have had if you were collecting rent.

Optional coverage: As a landlord, you can buy additional coverage, such as rent guarantee insurance, natural disaster insurance, employer liability insurance and landlord contents insurance to cover your personal property items such as furnishings or carpet in the rental property.

Be sure to contact your insurance company to ensure you are getting the best coverage possible for your investment or to go over additional options you may benefit from.

1. YOU'RE THROWING MONEY AWAY

WHILE YOU MAY NOT BE GAINING EQUITY IN A HOME, YOU ARE PAYING FOR SOMEWHERE TO CALL HOME, WHICH IS NOT THE EQUIVALENT OF THROWING MONEY IN THE TRASH

2. YOU HAVE NO NEGOTIATING POWER

RENT PRICES AND LENGTHS OF LEASES ARE OFTEN NEGOTIABLE. DON’T BE AFRAID TO ASK THE PROPERTY MANAGER OR LEASING AGENT TO SEE WHAT THE OWNER WOULD CONSIDER.

3. IT'S DIFFICULT TO GET OUT OF A LEASE

ALTHOUGH YOU ARE RESPONSIBLE FOR THE LEASE, DEPENDING ON THE LEASE TERMS, LEASE BREAK POLICIES CAN DIFFER. RESEARCH YOUR LEASE OR AS THE LANDLORD/PROPERTY MANAGER FOR MORE INFORMATION

4. THE LANDLORD IS RESPONSIBLE FOR ALL REPAIRS AND REPLACEMENTS

AGAIN, DEPENDING ON THE LEASE TERMS, THIS CAN DIFFER FROM RENTAL TO RENTAL. BE SURE TO UNDERSTAND THE LEASE AND WHAT IS COVERED BEFORE SIGNING

5. A LANDLORD CAN END YOUR LEASE EARLY

THE LANDLORD HAS TO FOLLOW THE LEASE, UNLESS THEY SELL THE PROPERTY TO AN INVESTOR WHO WILL KEEP THE RENTER IN PLACE THROUGH THE LEASE DATES.

KEEP IN MIND, WHEN IN DOUBT, ALWAYS ASK YOUR LANDLORD OR PROPERTY MANAGER BEFORE MAKING AN ASSUMPTION.

As a property manager it’s a good idea to inspect properties regularly.

When should you inspect?

• Move In - done before a new lease begins, ensures all previous work has been completed and property is move in ready. Then again by the tenant once they move in to notate the condition of the property when the moved in.

• Annual - done with a tenant in place to note the condition of the property; one, two or even three times a year is normal.

• Move Out - accesses the overall condition once a tenant moves out

Remember a quick 5 minute inspection can prevent major expenses down the road.

This is a great time to see potentially unreported issues and point them out and advise the tenant these are things that need to be reported so they can be addresses, check for unauthorized occupants, unauthorized pets and just overall maintenance and upkeep.