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MONTH TO MONTH VERSUS LEASE mvl.sdcpm.com

ADVANTAGES OF MONTH TO MONTH


Rents can be raised  to any amount.Increases of 10% or more in a calendar year require a 60-day notice, otherwise, the 30-day notice is ok.


If no rent increase is planned for a while then this is of limited benefit. In addition rents are set by the market as if the rent is raised above market rent, tenant may choose to move out.


Tenant can be given a Notice to vacate without a reason having to be given. This notice must be at least 30 days for the first year of tenancy and 60 days for the second year and thereafter. This may be helpful if you decide to move into the unit or decide to sell it as the buyer may wish to live in the property and if there is a lease it will make it harder to sell.

This is helpful if a tenant is causing non-rent related issues. When on a lease it may be harder to prove the violation but for a month to month, no proof is normally required. This is especially helpful in multi-unit properties where there tends to be more problems than for single family homes of tenants not getting along with other residents (eg noise, parking problems)


In the City of San Diego, after two years a reason that complies with the "Just Cause" laws must be given for asking the tenant to move out.


ADVANTAGES OF LEASE


Tenant less likely to cause a vacancy for the landlord as if they break the lease they are responsible for any loss incurred to the landlord .The landlord must still try to re-rent the property at market rent if the  lease is broken to mitigate the losses of the tenant.


For single family homes and condos , offering a lease may make it easier to rent as prospective renters want the security of being able to rent for fixed period of time without the landlord asking them to move out so the property can be sold.


For multi-unit properties, a lease may give tenant security that landlord cannot raise the rent or ask them to move out without having to give a reason.


Some lenders require borrowers to have a 1-year lease on their home in order to lend them money.


RIGHTS OF MILITARY TENANTS TO BREAK LEASE:mil.sdcpm.com