Sign Kansas Banking Month To Month Lease Simple

Countersignature month to month rental agreement

what's going on so today I want to speak on mom to mom should you or should you not let your tenants go off tomorrow good question its pros and it's cons we're going a month-to-month versus having our traditional six or twelve monthly 12-month lease in place so the benefits to you for going month-to-month there are only two benefits that come to mind for you as the landlord when it comes to letting the tenants go off the month one is generally four month the month you can charge more than if you have them under a 12-month lease so let's just throw some numbers out there it would be fair if they were in the 12-month lease paying $600 and decided to go more for small going up to maybe 650 675 a month for them to do month-to-month versus the lease I think that's fair because it gives you a little extra cash in pocket and it's just one benefit to you for them for month tomorrow the other benefit that I found from lay attendant going off the month is the fact that that's the in a month in a month-to-month scenario if for whatever reason you need to get back into that property because that you want to sell it or maybe you you know you you want to move in if you have a family member or something who got this place out of town who needs to move in and you know whatever your reason is you know you have that option also - indeed of course with the months notice so that can benefit you for several reasons because say let's say you for whatever reason just wanna liquidate the property but in a 12-month lease scenario you have nine more months left before their lease is over that means you have to wait that nine months out before you can sell the property versus if your month-to-month and you just had to sell the property you could go ahead and write them to notice their 30-day notice give them their 30 days or you know whatever the law is reflecting your specific all municipality and from there you can go ahead and recoup the property and sell it do whatever it is you have to do and it's also another way let's just say you have a problem tenant in there on the month-to-month and leaves you you're neither one of y'all are stuck in that contractual agreement so if there is any problem if they have bad blood with you as a landlord - let's face it all landlords aren't you know the nicest people either or if you have problems with them as a tenant so our tenants aren't the nicest people so people aren't nice but you know we like to hope and think that the majority of them are y'all have any problems with each other y'all can go ahead and end it there and you know what can you do your own month-to-month so y'all both get that right now the drawback to going month-to-month is for obvious reasons the fact the tenant can walk away at any time so you're not guaranteed anything so what do I mean basically I'm just saying you can't okay say you got attended in their pants six hundred a month in this January you can't just say okay by December you know this property will have produced seventy two hundred dollars you can't say that because when they're month-to-month you just never know when they may walk away and how soon you're going to be able to get some someone new in there so we're month-to-month it can it can it can turn into a scenario where your money becomes a little more unpredictable because you can't control when people leave or how long they decide to stay and you may have somebody month-to-month stay for ten years or you may have somebody month-to-month only stay for three months you know what can you do so that's that's really like the number one main drawback to going month-to-month is it takes some of the predictability out of your business and therefore it takes some of the predictability out of your cash flow which can be problematic so what I suggest is I would only go month to month with the tenant if that particular property wasn't my main source of income so let's say you have a job or maybe have other properties or you have other means of making money then yeah you can go month-to-month with one of your one of your particular properties or maybe a few of your properties just depending on how many you have what your cash flow looks like and how you want to set your business stuff so yeah I just want you to keep those things in mind the pros and cons of going month-to-month with your tenants and a sense your business assess your income needs and your goals and you have to determine whether or not month-to-month benefits you as well as your team okay get that money real estate investors I'll catch y'all on the next one