How I Choose My Tenancy Type

by Nick Huges
(Miami, FL)

Being a landlord and part-time property manager, I strongly believe that the right property lease agreement for a rental property depends heavily on two factors - Your investment aims and the current property cycle.

If you are into flipping houses for a quick buck, then your tenants are merely temporary fill-ins to help cover the mortgage payments until you find the right buyer.

Naturally you will want a property lease agreement that gives you the flexibility to end it quickly and easily. In this case, a tenancy at will or periodic tenancy should be something that you should consider.

Other landlords view their rental properties as long term investments that earns them passive income from rent collection. In the case, you will have to be extra careful and diligent in screening your tenants since they are your lifeline.

Once you have found reliable tenants, it's time for you to lock them in with a fixed term tenancy. When it comes to fixed term tenancy, it's very, very important to include a clause that allows you to review and raise the rent every 6 to 12 months.