I find that C class renters neither read the lease or care one iota what it says. They move when they please or when you throw them out.

Most do not care at all about your rules.

I read almost every day on here proof of this. Dead cars, tv dishes attached to roofs, extra guests, pets, and more that shows that most people do not care a bit what you or the lease says.

I set out as my goal and expectation that the resident will stay at least 1 year so that I cover my turnover costs. With proper screening, this usually works out well. I look for tenants who lived at least 1 year at their past residence and who had a year lease. They have already been "trained" to think long-term, and these tenancies always seem to work out pretty well.

Example: last year I had 3 tenants who decided to move out within the first year. All 3 paid their ETFs, as agreed. If they had been M2M, I wouldn't have gotten those fees. They expected it, because they had all come from year lease homes before, so they knew about lease buyouts, etc.

My concern with starting off with M2M vs. year lease is I would attract folks who want to squat somewhere for 3-6 months and then move...putting me back to trying to fill a vacancy again. Once we get past that first year, I've had M2M folks stay 3-5 additional years because they like the flexibility I offer.

Richard (MI)

MTM is the only way to go for me. As others have said, the tenant will leave when they want... Me? As the landlord, I'm bound to follow the rules. Those rules require jumping significant hurdles to terminate an annual lease part way through. Those same rules also allow me to non-renew without cause.

I have found my leases up in their kitchen cabinets after they leave, that were used for card game score sheets (on the back). And that was about as much attention as they paid to them!

"If I have a bad actor, I can get rid of them without going to court"

I don't quite understand this sentiment.

If you have a bad actor on a yearly lease, wouldn't there be a clause in the lease they violated?

David asks a great question regarding the difference between evicting someone on a lease for a violation vs. non-renewing someone.

First question: who here has evicted someone for a lease violation OTHER THAN non-payment of rent?

I have not. I have no idea how difficult it would be or if the judge would insist we work out a compromise. If you have, I'd like to hear how it went. Easier or harder than non-renewing?

Second question: who here has ever non-renewed a M2M agreement for whatever reason?

I have and it was easy. I handed her 30 day's notice, and she was gone by month end. If she had not moved, then I would have had grounds to evict her based on the RSMO (Revised Statutes of Missouri) and go thru all that fun. The law is clear: I can non-renew M2M at any time for any reason (or no reason) with 30 day's notice, and a hold-over can be evicted simply for holding over. Hold over is considered a material breach, similar to non-payment

Having a M2M tenant vacate (either on their own or I give them notice) in the middle of winter here would not be fun. I would have to wait/work extra hard to fill vacancy AND the rent would be about $100 lower.

I have gotten rid of a tenant on a year lease when I found out his dog's breed wasn't accurately stated on the application. Rather than try to evict (my lawyer thought I had a good case, forgot why), I simply offered him cash for keys and he took the money and ran (it was really a refund of one month's rent he stayed there).

I never do M2M. 1 year minimum with the end date convenient for me. I do this because I'm in the business of making money. (as most of you preport to be)

M2M is revolving door- term makes money with early termination and fees for damages. Skips and early move out with breaking new/renewed leases.

myob said "Nothing worse than a 10 year tenant".

I usually do one year leases. Sometimes a new T will request a two year, and I will accommodate that request.

I have done a three year (once that I can recall), with a rent increase spelled out for the third year.

As others have said, I do not want short term tenancies, because I need to recoup the cost of the rehab work. A one year tenancy is fine. After that first year, I am happy to go MTM or to enter into an Extension Agreement for an additional year -- whichever will make the T happier.

Although a T can breach the lease and leave early, I do NOT have many of those.

Unlike myob, for me, a ten year tenancy is fine! I have several of these.

I do one year lease with new tenants on places under normal circumstances.

I offer a 6 month lease for an additional 10% per month. You'd be surprised how many go for that.

With inherited tenants on new buildings, I put them on a MTM lease asap. Why? Because they haven't went through my screening. I want them on my lease asap so I can get rid of them under the systems I'm used to.

David,

I own over 100 units and manage them myself. Each time a tenant moves it cost me my time and money to fix up and re-rent. I would be "stupid" to go through the hassle and expense fixing up and renting out a unit where the tenant could move anytime they wanted. So instead of the unit being profitable, it would be a loss. Then instead of owning INCOME PROPERTY, I would classify it as a "MONEY LOOSING BUSINESS". Remember each turnover may require: Painting, Flooring, Cleaning, Marketing Loss of Rent and Time. Lets call a typical turnover costing around $3,000.

In my market mtm is all that has worked. They stay if they are happy, if not I want them gone.

I get around the short termers with a large prepaid rent deposit, and a discounted rent if they stay a year. It may not hold up in court, but hasn't been tested.

If I get druggies, even old people can be druggies, or pitas, I can bye bye them fairly quick.

Another discussion that proves "All Real Estate is Local."

To Roy's first question, I wonder why a YEAR is a typical lease? I'm sure it's historical, perhaps a farming issue, but why a solid YEAR and not 2 or 5 years - or six months?

Robert (hey i'm stupid) 3K in fix up? That's a number for a tenant who's been there 5 to 10 years. If 3K is the damages than you sholdn't be paying that BUT collecting for the damages.

I do M2M agreements, so everyone's responsibility is still spelled out. I don't have a large number of units, and the building are mostly mid to late 1800s. I do not advertise a year lease or M2M, neither do I advertise pet friendly. I am small enough I can decide who to rent to based on information I find and gut feeling. My tenants tend to stay years.

Previously, I did year leases. People would move out after a year, some people were such pains, never violating the lease, but difficult and I could not wait until they left.

Roy,

Why annual only? and renew for annual only?

Control of my biz and profit.

ELT! I bring in THOUSAND$$$ and THOUSAND$$$ every year with this simple clause. MTM would greatly reduce my income, so much that I would not be able to buy you dinner at Convention!

Retention SHOULD be the goal of every LL, turnover is the enemy. We work to KEEP people not find ways to get rid of them.

I want consistency and stability. We have people who DO stay those last few months and ride out their lease.For those callers who ask for MTM, we tell them they can leave at anytime with the ELT and they accept that.

Unfortunately MANY of our MTM or short term rental calls are desperate people who have no stability in their life, exactly the kind of person we are avoiding.

MA laws aside, I think many LLs are fearful and use MTM as their own back door escape in case THEY messed up by not properly screening. With proper screening and In Home Visit there is very little risk.

Just signing the lease is not enough. We spend another 40 minutes going thru the lease, orienting the new res. This simple meeting reduced our management problems IMMEDIATELY.

For those LLs who have trouble with residents I suggest a solid lease which includes policies and an orientation session to teach them what you expect.

So many LLs expect good behavior but don't take the time to define it on paper and to teach it, then they complain about problems.

My thoughts.

BRAD

All real estate is local. Exactly!

Judges in my city are reported to give the tenant right to cure for items besides unpaid rent or holdover. Or, as I explain to my applicants, Mt M keeps us both on our toes. It also reduces that panic feeling of , 'gee, lease is almost up. Do I want to be locked in for another year?'

Personally, I have issues with being constrained, so I prefer the feeling of having options that using MTM gives me and my tenants. I am very easy-going on many things, so I make sure my lease ONLY specifies the things I care about. I won't put in a lease things I won't enforce.