Month to Month Lease?
Our tenants on the top floor have their lease ending soon, and they want to renew the lease on a month to month basis. I have no problem with a month-to-month arrangement as long as they can give us 3 months advance notice when they want to leave. That way we have ample time to…
Our tenants on the top floor have their lease ending soon, and they want to renew the lease on a month to month basis. I have no problem with a month-to-month arrangement as long as they can give us 3 months advance notice when they want to leave. That way we have ample time to find new tenants. I’m wondering how would I word a binding lease renewal agreement encompassing that? any thoughts? Does anyone have any examples of a month-to-month agreement?
I have a rider in my lease saying if tenants go month-to-month at the end of the yearly lease, the rent goes up $250/month. Then I contact them 30-60 days before the end of the lease to offer them to renew for a year without the rent increase.
The truth to a month to month lease is this:
In the event the owner were to give the tenant the required notice to vacate, and if the tenant does not vacate, it will take much longer to get a court order for the tenant who is holding over to vacate than if there is a term certain lease with a specific date for the lease to end. In the eyes of the court, having a month to month lease does not show that the landlord has any urgency as to the time the apartment is vacated.
Where this matters is when the landlord has been told the tenant will move, and goes ahead and signs a lease guaranteeing the apartment to a new tenant, but cannot produce the apartment. Or the owner is selling the building, and has agreed to deliver it vacant but cannot do so. Some real estate agents advise sellers to put their tenants on month to month leases when they list a property for sale, but it’s not at all clear that this is a good thing.
On the other side my understanding a month to month also means the landlord can ask tenant to leave with 1 month notice.
Anyone know the truth to the landlord side?
I forgot to mention this: I would never write a month to month lease, under any circumstances. I would always use a term certain lease with an early termination clause.
Slopefarm’s suggestion on the lease is a good one. Tenant’s response should also give you some insight into their current situation. I never understand why LL’s try to author their own legal documents, but if you must then google “lease amendment and extension agreement” and revise to suit. I agree with those who say that 90 days is excessive. 60 days is more than adequate, and generally more than usual for both LL and tenant in a standard lease.
I agree with slopefarm – write a lease ending on a date that works for you – preferably the spring or the fall, when people are actually looking for apartments – and include a clause allowing early termination with 60 days notice in writing.
I wouldn’t assume that the renters are going month to month to jump on a better deal. Maybe, but sometimes life doesn’t fit neatly into 12 month leases, meaning that people change jobs, move in with significant others, etc., and ask their landlords for some flexibility. Standard notice (from the leases I’ve had) is 30-60 days, and that was for yearly leases. No one in NYC looks for an apartment more than a month (or a month and a half tops) before they’re ready to move in, so 90 days notice seems excessive for both parties.
your renters are looking for a better deal. As most know, the market is slow in the winter. I’m willing to bet, they’ve been looking, but haven’t found what they want, yet. So they want a month to month lease so they can jump ship a soon as they find the deal they’re looking for. 90 days is not neccasary, but it may scare them a little, if I’m right, they won’t be able to leave you empty handed. You must think like a renter, to know the renters next move.
Just to throw some guilt in your direction… 60-90 days is crazy in NYC unless it’s a high-end rental for $5,000+ a month. When you go to rent an apartment, they are either “available immediately” or within a couple weeks. Most listings are for the following month *at best*
In other words, renters can’t plan 90 days in advance in this town. Unless your comfortable with the prospect of being homeless, many people opt to carry TWO rents for several weeks or a month — overlapping leases.
Now, SHOULD this be different? And SHOULD renters be able to plan ahead? YES. But you would be an exception and not in the rhythm of NYC.