Pros and Cons of Month-to-Month Tenants

Regarding leasing agreements, the two most popular agreements are month-to-month and year-long. Most landlords prefer the traditional year-long agreements because they lock tenants into a rental property for an entire year, but let’s dive into the pros and cons of month-to-month leases and see how they could be beneficial to you and your Round Rock rental properties. 

Pros of Month-To-Month Tenants

Flexibility

Month-to-month agreements allow landlords to control whether they want to keep the tenants in the rental. All landlords have to do is give adequate notice per state requirements that the agreement will not be renewed and the tenant would have to move out. Texas and most states require a 30-day notice, but be sure to verify with your state.

Rent Raises and Policy Changes

With month-to-month agreements, it’s easier to implement rent raises and policy changes when your rental properties are vacant. You also won’t have to worry about losing any tenants during this time, so you can see what works and what doesn’t. 

Keep Great Tenants

If you have tenants who pay their rent on time and aren’t ready to sign a fixed lease, being able to offer them a month-to-month lease is a great option. It will keep them there longer, not cause you any problems, and will save you from having a vacant property. 

 

Cons of Month-To-Month Tenants

Lack of Stability

One of the biggest cons of month-to-month agreements for landlords is the lack of stability. It’s challenging to figure out how profitable you will be in a year with the unknown of how many tenants you will have and how much rent you will collect. 

Flexibility = Uncertainty

The flexibility of controlling tenants and end dates can also mean uncertainty. Not knowing how long a tenant will be in a rental property means you don’t know how much money you will make or when you will need to find new tenants. 

Short Notice

While landlords can provide notice to tenants to move out, tenants can also give a 30-day notice to landlords at any time. This means short notice for landlords to find new tenants, which could lead to further issues if landlords rush and don’t conduct a proper screening.

 

Overall, there are a lot of benefits to month-to-month leasing agreements, but it is important to compare them to yearly agreements and decide what is best for you as a landlord. If you have any questions or need recommendations, reach out to us! We are always here to help.

 

How To Make Your Rental Property Stand Out

When advertising your Round Rock rental property, you want to make sure it stands out against other local rental properties. Each day your property sits empty is money out of your pocket. Here are a few tips to make sure it gets rented out quickly.

Curb Appeal

When prospective tenants are looking for rentals, they are looking online. The first pictures they see are of the exterior of the home, so you’ll want to make sure it looks nice. Make sure the weeds are pulled, the lawn is well-manicured, and trash cans are put away. You don’t need to go overboard, but small things will make a big difference. 

Staging

It’s hard to envision where the furniture will go and what the property will look like if it’s vacant – so consider staging the home to help tenants get a better idea. Avoid bringing in any personal items, but items to make the property feel more inviting that can help tenants imagine what it’s like to live there are helpful.

Repairs and Updates

Take care of your rental properties and make repairs and updates as needed. Even when you don’t have a tenant living in the property, make sure to clean regularly and make sure everything is in working condition. 

Know Your Competition

There are many rental properties in Greater Austin, and we want prospective tenants to choose yours. So make sure you do your research and know what else is out there. You can use this information to point out what’s special about your property compared to others in the area. 

 

At the end of the day, focus on what makes your property special against all others in the area. Keep it simple and do what you can to make it shine. If you have any questions or need recommendations, reach out to us!