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).
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