We have recently been approached by various owners that want to rent their properties out on a month-to-month basis.  Most of these owners have been "stung" by previous tenants.  It's possible that the tenant wasn't properly screened; but it's also possible that bad things just happen.  Either way, the owners think that a month-to-month arrangement would work in their best interest.   The theory goes, if I don't like them, then I can get rid of them.

From a professional standpoint, here are a couple of things to consider.  First, finding a quality tenant is time consuming. We advertise, show property, prepare paperwork, perform move-in inspections, set-up electronic transfer files, and send out copies of documents to all parties.  These services are just the first things we do, and as you can imagine, they don't come free.  If you had to pay these fees every six months, you would be losing serious money.  On a personal level, I'm fine with it because that's just more revenue for me.  But for an owner, I wouldn't recommend it.

Second, if you advertise for month-to-month then that is what you are going to attract - tenants that are more transient in their plans.  They may be well qualified, but contractually they don't have to stay.  Most of the people that respond to these month-to-month ads are transitioning between houses.  Perhaps they sold house A and are still looking for the perfect house B.

Finally, good tenants don't want to have a month-to-month hanging over their heads.  Moving is expensive.  In eighteen years of marriage, my wife and I rarely argue.  The exception to that rule is when we move.  So, we hire a moving company when the need arises - even though it is expensive.  Similarly, your tenants want the security of a fixed cost contract and a fixed term contract.  This is especially so if they have children in a certain school or school district.

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Scott Taylor is the principal property manager and co-owner of SCV Leasing in Santa Clarita, California. His experience as a renter, property owner, and property manager makes him the best choice for managing your rental. SCV Leasing's unsurpassed marketing plan puts renters in properties fast.  Mr. Taylor can be reached at scott@scvleasing.com.