Why Month-To-Month Leases Could Be a Bad Idea
After a tenant’s lease expires, the owner of the property needs to make an informed decision on whether or not to renew the lease or continue the payments on a month-to-month basis. A high quality professional property management Baton Rouge firm will be able to advise you on this matter and show you why having tenants on a long-term lease is a better idea when it comes to your property investments. There are several reasons why having a tenant on a month-to-month basis is a bad idea, and you should consider these things before allowing them to remain in your properties without a lease.
Full Protection with a Property Management Company
When you choose to partner with a property management company, they will determine what your unique needs are to craft a plan of action that will work. They will design an airtight lease, and they will ensure you are fully protected. Having a poorly written lease is the biggest mistake property owners can make. It is crucial your lease is written accurately so that both you, as the landlord, and your tenants are protected. If you do not have a good lease in place, then you will have limited control over your property. A real estate asset management agency will give you plenty of support and expert advice that is specific to your property. There is no one-size-fits-all approach when it comes to managing real estate. Landlords need a customized plan that will be tailored to their specific needs.
Most tenants will prefer to rent on a month-to-month basis if they can get away with it because then they can move anytime they choose, without any ties. However, it is bad to set the precedent that you will allow month-to-month tenants. If you do it for one tenant; then, every tenant in your building will expect this special treatment as well. It is best to set lease guidelines and stick to them. Having a lease means you have control over your properties. You don’t want to make a costly mistake by losing this control. A professional real estate asset management agency will be able to help you establish an organized system that will ensure all tenant leases will be renewed on or before their expiration dates.