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With rental homes in Utah, homeowners have made the first decision to rent instead of sell their home. One of the next important decisions is whether to offer a month-to-month rental agreement or a lease contract. Month-to-month could be appealing to more people because they are able to live short term and not have to adhere to a year-long to a set of terms from a contract. Knowing the differences between the two can be to your advantage as a homeowner.

KeyRenter is a Utah property management company comprised of professionals who deal with this decision everyday. They are constantly helping their clients who are homeowners decide on the contract length and terms for their rental property. It’s important to choose the right one that fits your needs.

Month-to-Month: The landlord and tenant have the option to end or renew their relationship after each month. On a month-to-month basis, terms of the contract can be changed. Terms can be changed such as the monthly rent and other tenant and landlord responsibilities. The contract is altered after negotiation with advanced notice of the changes. If the opposite party doesn’t agree to them, they are simply free to move out at the end of the month.

Some homes for rent in Utah use month-to-month contracts with tenants. As a landlord, you could use this to your advantage. If your tenant isn’t doing what they are suppose to be doing according to the contract, you could raise the rent higher which might force the tenant to move out if they can’t afford it. It’s better to discuss these terms with the tenant before changing them.

Year Lease Contract: With a year lease contract, both the landlord and tenant are bound to the contract for a year or for however long the contract says. It is a written contract that both parties sign. You must adhere to the responsibilities for the entire length of time. Landlords are not allowed to change the rent price during this time. Some tenants prefer this way to rent a home because the rent will be steady and it’s a more reliable contract.

As a landlord, you can’t kick out a tenant during this contract since it’s a long-term agreement. The only way you could evict a tenant is if they don’t pay the rent or break the contract in some other way. You could take them to court to break the lease and receive the money the tenants owe you. Using Utah property management such as KeyRenter can help you decide on the best contract for your rental property and situation.

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