Author Topic: Renting rooms - M2M or lease?  (Read 1440 times)

Ricky

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Renting rooms - M2M or lease?
« on: September 27, 2015, 02:59:51 PM »
For those of you currently renting rooms out - what kind of lease (if any) do you usually write up? I am thinking 6 months would be ideal so that if it's not a good match then everyone could part ways easily. Month to month also sounds reasonable as long as the person looks promising. I just can't imagine a traditional 1 yr lease on a roomshare?

NoNonsenseLandlord

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Re: Renting rooms - M2M or lease?
« Reply #1 on: September 28, 2015, 06:41:37 AM »
I would only do a MTM lease.  There are far too many dynamics that exist with a bunch or people living together.  Require a 45 day notice and a larger deposit, if you want.

Ask yourself this.  If a tenant leave, what will you do to get your lease money?  And how much time, money and effort will it be?

If the tenant is a real pain, what impact will it have to keep them there longer than you want?

Leftside

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Re: Renting rooms - M2M or lease?
« Reply #2 on: September 28, 2015, 12:31:03 PM »
I do month to month.  It allows people to move out more easily and can potentially make the income unsteady - but you do not want to live in the same place as someone who does NOT want to be there.  Better to just let people come and go as they please.

Bearded Man

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Re: Renting rooms - M2M or lease?
« Reply #3 on: October 13, 2015, 08:11:15 AM »
I've considered renting out rooms in my primary residence, but would only do the same thing I do with my single family rentals: M2M lease. Once I switched to only doing M2M leases, I felt A LOT better. I guarantee the same rate for 12 months via an addendum, but all it takes is 20 days notice before the end of the month for me to get rid of someone, so max I'm stuck with them is 2 months. No question I would do the same thing with room mates, and I'll tell you that I would PAY someone to leave if they really were bad enough.

hyla

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Re: Renting rooms - M2M or lease?
« Reply #4 on: October 26, 2015, 11:05:02 PM »
From a renter's perspective, month to month can be a very attractive situation, and offering month to month may increase the number of applicants you get.  There are cities where month to month leases are rare.  For renters who are uncertain how long they will live in an area (cause they're job searching, or finishing school) or are in town for a temporary/seasonal job it's nice to not be locked in for a year and face penalties for breaking a lease early.