There are generally two types of Residential Leases: Annual and Month-to-Month Leases. While both are beneficial for a Landlord, our office recommends an Annual Lease. Therefore, if you are a Landlord and have questions about the type of lease that best protects you, contact the Law Office of Brian P. Kowal, PA.
Advantages and Disadvantages of a Month-to-Month Lease
- A Landlord can Terminate the Lease by giving 15 days Notice. However, notice must be given 15 days prior to the beginning of the next rental period.
- A Landlord can remove a problem Tenant. In other words, if a Landlord has a Tenant that constantly violates non-monetary Provisions of Florida Statute, they can remove them without a reason. In other words, they can simply provide them notice that the lease is terminated without having to discuss the violations.
- Increase the Rent in a shorter time period. Unlike a Annual Lease, you can raise it by giving less than a month’s notice.
- A Landlord has less time to find a new Tenant. This can result in a loss of rental income.
- A Tenant can break the Lease by giving the Landlord 15 days notice. Unlike an Annual Lease, there is no Liquidated Damages Clause.
- There could be more wear and Tear to the property since Tenants move in and out of the property
Advantages and Disadvantages of an Annual Lease
- The Landlord has more stability. They know that the Tenant cannot terminate the lease at the end of the month.
- Landlord does not need to spend money trying to re-rent the property after a month.
- Usually contains an Early Termination Penalty known as Liquidated Damages. Therefore, if the Tenant wants to terminate the lease early, they have to pay 2 months rent.
- If a Landlord does not get along with the Tenant, they will not be able to remove them until the lease terminates.
- The Landlord cannot raise the rent during the Lease.
- If a Tenant vacates the property and the Landlord is only allowed to rent to one Tenant per year, they are left with a Vacant unit until the Lease Terminates.
Annual and Month-to-Month Leases provide advantages and disadvantages for Landlords and Tenants. However, the Law Office of Brian P. Kowal, PA recommends a yearly lease because it provides more stability for a Landlord. If you are a Landlord and have questions about month-to-month and annual leases, contact our office at (954) 990–7552.