After a tenant’s initial lease has expired, the property owner will need to make a decision as to whether or not the tenant will be required to renew their lease or whether they can just continue on as a month-to-month tenant. A quality rental management Baltimore agency will be able to give advice on how to keep these tenants on long-term leases rather than letting them stay in the property on month-to-month terms. There are several reasons why it is a bad idea to let tenants continue living in your property without renewing their lease.
Uncertainty of Tenant Retention
Renting on a monthly basis could negatively impact your ability to give the same rental unit to a tenant who wants a long-term lease. If you allow tenants to stay on month-to-month, then you run the risk of them leaving anytime they choose. This can be costly for a landlord because they have no guarantee of how long the tenant will stay. If the tenant up and leaves without warning, then the landlord could have cash flow problems if they are not expecting the tenant to move.
Rights are Limited
When your property management company designs a lease for your tenants, they create it so that you are fully protected in every way. From property inspections to maximum occupancy and late fee amounts, the lease lays out specific terms that are to be adhered to. If the lease expires and they continue to rent your property on a monthly basis, then you are setting yourself up for all kinds of problems. You will have limited control on things, and it is just not a good situation. Hire a quality rental management firm that will get all leases renewed in a timely manner.
Other Tenant Issues
If other tenants discover someone else is renting on a month-to-month basis, then they may try the same thing. You have to set a precedent that this will not be allowed if you want to keep things under control. Some tenants may feel it is unfair, and you could have a real problem on your hands if someone claims you are being unfair as a landlord. A quality real estate asset management company will be able to effectively keep things in order so that all tenants are happy and on yearly leases as they should be.
RPM is a rental management Baltimore agency that offers a range of property management services. They have skilled professionals who are fully trained in all aspects of the rental management industry. Click here to get more information.
