Do you offer month-to-month leases for new leases?

Does your company offer month-to-month leases for new move ins? Our VP has recently decided he would like to offer month-to-month leases for new residents moving in. Does your company do this or have you tried it? Do you charge a premium for this option or have other restrictions? What were your results?

Hi Kimberley.

The state of Florida requires a six-month-one day lease, or the property is required to pay a "resort tax" that is currently around 10%. This prohibits us from competing with area hotels for resort business. Otherwise, I would offer it in a heartbeat. Most people want "short term", but end up remaining for months beyond their original move out date. Put a 20% premium on it and make it refundable if they remain beyond a certain time period.

Kimberly,

In all the companies I have worked with, none of them offer month-to-month terms on new move-ins. (Most of my clients are in Minnesota, some in other states, like Kansas, Ohio, and Texas.)However, depending on your needs, your financial position, and your market in this economy, this may be a valid option. Weigh you pro's & con's carefully. If you DO decide to offer month-to-month terms, make sure they are credit worthy!

-Daisy

Kimberly - what are you charging on security deposits for the M-T-M move-ins? How are you protecting your budget re: cost of turns?