It’s important to stay informed on the different lease options available to you and your renters. This knowledge will allow you to make the best business decisions and keep your rental income flowing. The month-to-month lease has been gaining a lot of traction recently. In today’s rental climate, this can be a beneficial option for today’s landlords.
What Is A Month-to-Month Lease?
Just as the name suggests, a month-to-month lease continues on a monthly basis, as opposed to the typical one or two-year lease. One of the most important points to note about the month-to-month lease is that it typically renews on an indefinite basis until either party provides written 30-day notice of cancellation. This format often serves as a way to extend traditional leases for a period of a few months. More recently, this became a more popular leasing format for properties in a community-based rental like Ravenswood apartments for rent.
Are Month-to-Month Leases Legal in Chicago?
Month-to-month leases are legal. However, keep in mind that Illinois law still applies regardless of leasing length. This means that regulations of the Chicago Residential Landlord and Tenant Ordinance (CRLTO) still apply and must be adhered to. These standards apply to any type of residential dwelling regardless of leasing terms and should always be considered when leasing an apartment for rent in Chicago.
How Can Month-to-Month Leases This Benefit Me?
The biggest benefit of month-to-month leases is keeping a good renter in your property for a longer period of time. It’s easier and often cheaper to keep a good tenant than to find a new renter. Allowing an existing renter to stay on a month-to-month basis will help keep the income flowing and minimize vacancy. While Chicago renters can sublet their apartment, a slew of issues may come with that. A month-to-month lease can alleviate those issues.
Why Do Renters Like It?
Renters love month-to-month leases for the flexibility it provides. Chicago transplants enjoy being able to test out a neighborhood on shorter lease terms upon their arrival. Professionals sensing their job may be relocating also prefer these types of rentals. Either way, this agreement gives them the peace of mind of not being locked in for too long. Oftentimes, renters willingly pay more per month for the privilege of this flexibility. In short-term situations, such as contract jobs or internships, the ability to keep their stay brief is worth the cost.
What Else Should I Consider?
With this type of leasing structure, there is always the possibility of excess turnover. As the landlord, it’s your responsibility to find a new renter. The process simplifies when you prepare ahead of time for potential renter turnover. Getting professional photography of your property and marketing your vacancy is key. Proper preparation sets you up for a smooth transition with minimal downtime.
How Can I Protect Myself?
The easiest way to protect yourself in a month-to-month lease is to include a 30-day notice. This notice protects you in several ways. It gives your renter a clear-cut process to notify you that they will be moving out. This allows you time to schedule any cleaning or renovations you need to do before renting the apartment again.
With notice, you may also terminate the agreement if you see fit.
If you are trying to make the most of your rental properties, consider month-to-month leasing. Despite its downsides, the flexibility and popularity make it desirable to renters. The more options you provide, the more likely you are to attract consistent and quality renters.