ORAL LEASE VS. WRITTEN LEASE, MONTH TO MONTH – Part One

MONTH TO MONTH ORAL LEASE VS. WRITTEN LEASE – Pros and Cons

Recently I had an investor ask me about the benefits of a month to month oral lease vs. a month to month written lease.

While there is much to blog about this, essentially here is what you need to know about the pros and cons of both an oral month to month lease and a written month to month lease.

Of course, having a traditional one year, written lease, allows the owner to know and plan how long the tenant will be in the property and can also provide the Landlord with specific written protections. BUT if the lease is month to month or is oral (non – written) then it gives the tenant the flexibility to move whenever they want and  excludes certain landlord protections – this should make a landlord nervous.

Therefore, it is always best to have a written one year lease.  But if you decide to have an oral agreement (and not a  written lease),  the usual form of residential oral lease agreement  is a monthly lease which is governed by Chapter 83, Part II, of the Florida Statutes and will provide  many  of the  lease terms between the landlord and tenant.  For example, absent a written lease the Florida Statute or a judge, will dictate how much time must be given for a notice of termination, what the landlord’s and the tenant’s duties are, and some other provisions.

Pro’s of a ORAL (non – written) month to month rental  

An oral lease creates a tenancy at will, that is, the rental can be terminated by the landlord at any time without any reason – giving at least 15 days’ notice to tenant prior to the end of the monthly rental period.

Con’s of an ORAL (non – written) month to month rental   

The tenant can also terminate the rental at anytime, without any reason. The owner can NOT plan how long the tenant will be in the property and the landlord has no peace of mind that his unit will be occupied for the year.

Another con is the landlord has less legal protection and control and can not dictate specific terms that the tenant has to follow since nothing is in writing. This increases landlord’s risk of a lawsuit.

In our next articles we will discuss the Pro’s and Con’s of a WRITTEN month to month lease. ( View Part Two Here and Part Three Here of this blog’s continuation). 

About Octazon:  Whether you own a few properties or hundreds of properties in Florida, Octazon Management, LLC is here to simplify property ownership and management. We can help you manage any and all of your properties.  At Octazon we provide simplicity & peace of mind.  Octazon uses cutting edge, cloud based property management software that fully integrates the entire property management and financial process enabling the investor direct access to valuable owner/investor information 24/7.

When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales – so you never have to worry about losing control of your relationship with the owner. 

Providing Simplicity and Peace of Mind™ 

Call us 954-674-2467 or email us at info@octazon.com today.

                                   Check us out @ www.octazon.com 

SINGLE FAMILY HOMES* MULTI FAMILY* COMMERCIAL – OFFICE -INDUSTRIAL

New Tenants and Outstanding Utility Bills – North Miami Beach

CLASS ACTION : OVERCHARGING NEW TENANTS FOR UNPAID FORMER TENANT’S WATER & SEWER BILLS – AND THE CITY OF NORTH MIAMI BEACH 

It’s official : New Tenants and Outstanding Utility Bills are not connected to one another!

If an unpaid utility bill is in the former tenant’s name & not in the landlord’s name, then under Florida law, a utility provider may NOT ; Ask for payment of unpaid utility bills from the landlord, Discontinue service or Refuse the new tenant service to the property. To do so is illegal and violates Florida Statute 180.135, case law, the Municipal Public Works Act & the Florida Consumer Collection Practice Act.

Additionally, the utility provider can not  place any lien against the rental property or take any legal action against the Landlord or new  tenant  to recover overdue bills. In Berke v. City of Miami Beach, 568 So.2d 108 (Fla. 3rd DCS 1990) the City of Miami Beach filed a lien against the rental property for the unpaid utility bills of the former tenants. The court of appeals ruled, that the City could not impose a lien against the rental property. The fact that the former tenants received utilities, was deemed not to be a benefit to the landlord. The Court further stated that the City should have protected itself by requiring the landlord to co-sign for the utility account.

(Read about this problem also here in a previous blog post)

So,one would think that since the law is very clear, new tenants and landlords should not be hassled by a utility provider to pay the bills of former tenants. Surprisingly, that is not  case.

If onboarding new tenants and outstanding utility bills is an issue with your rental properties then Push back! Tell them the law! Let them know that recently a class action was certified by a Miami Dade Circuit Judge, alleging that the City of North Miami Beach has been illegally charging  utility connection fees, forcing  new tenants to pay delinquent bills of  former occupants before they could receive water and sewer service. Since the law is clear, the lawsuit claims that the city’s collection efforts of outstanding utility bills from former tenants has been in violation of several state laws

This practice, says Patrick Montoya, an attorney representing this class action suit, “has likely victimized hundreds if not thousands of tenants”.

It is about time that we are taking this fight to the courts to stop these illegal charges. They add up and impact the return on your investment.

About Octazon:  Whether you own a few properties or hundreds of properties in Florida, Octazon Management, LLC is here to simplify property ownership and management. We can help you manage any and all of your properties.  At Octazon we provide simplicity & peace of mind.  Octazon uses cutting edge, cloud based property management software that fully integrates the entire property management and financial process enabling the investor direct access to valuable owner/investor information 24/7.

When providing management services to Realtors, Octazon will NOT provide the leasing, rentals or sales –  so you never have to worry about losing control of your relationship with the owner. 

Providing Simplicity and Peace of Mind™ 

Call us 954-674-2467 or email us at info@octazon.com today.

                                            Check us out @ www.octazon.com 

SINGLE FAMILY HOMES * MULTI FAMILY COMMERCIAL – OFFICE -INDUSTRIAL