New Jersey renter’s law allows for many different kinds of lease arrangements. Most leases are on an annual basis, but landlords can also choose to have the lease run month-to-month. This is certainly a less stable arrangement than an annual lease, but there are several reasons that you should consider it if you are a landlord in New Jersey who is trying to fill up your units.
Here are some of the benefits of a month-to-month lease…
Access to a broader market of renters
You’ll attract more stable tenants with one year leases, but not all short-term tenants are bad renters. There are many people in New Jersey who must travel often for business, or need temporary residence for lucrative contract work. Being flexible with your leases by allowing month-to-month allows you to have access to all of these tenants, who typically leave less wear-and-tear on units than someone who has settled in.
On the other side of the coin, you can attract more residents for low-income units by allowing month-to-month leases. These types of tenants may not always have the credit score for a long-term rental, or the ability to guarantee work will be reliable over the next few months. This isn’t a problem when month-to-month leases are in place.
Speedier property management
Your tenants have the right to certain protections as long as they are under the lease. These protections will often prevent you from selling, renovating or converting units while they are occupied. This isn’t a problem if you don’t have immediate plans, but many landlords enjoy the flexibility of being able to make property decisions with more priority.
Under a month-to-month lease, you are never more than 30 days away from making the changes you want to make to your property. You reserve the freedom to sell everything or convert it to commercial space at your nearest convenience.
Simpler tenant management
If you’ve ever had trouble with tenants, you know the frustration of having to wait a year or more to be rid of them. Some tenants are more trouble than they are worth, and that’s something that you can solve very quickly if you have a month-to-month leases established.
You can also make adjustments that would require warning periods more often. For example, if you want to change the cost of the rent, you now have the ability to update the lease every month.
Let our lawyers help you create a better lease agreement
Our lawyers can help you understand the best lease agreement for your situation. We can also help you manage your property and screen the tenants who will be living there. Contact our lawyers today for a consultation.