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[quote=Anonymous][quote=Anonymous]First time landlord here. The current lease is about to expire. The tenant suggested that we [b]go on with a month to month lease [u]per the terms of the current lease[/u][/b].

As the landlord, am I better off signing a new lease for a year, such that I have certainty re term?

Also, the current lease does not have a rent escalator. Is it typical to sign a new lease with monthly rent increased.

MD.

Thank you.  [/quote]

You may have answered your own question if going month to month was already noted as part of current lease. I prefer a year contract for certainty or sometimes less than a year, I make sure that the contract comes to an end sometime during high season (May to July) as it reduces changes for vacancy and provides a few extra $$.

We put in a standard minimum 3% rent escalation clause upon renewal which we exercise upon our discretion depending on market situation, sometimes we do less than 3%, but past few years its been 3% for sure.

Sometimes, not always, tenant wanting to do month-to-month may indicate that they may be moving out soon and don't want to be locked into a longer term contract, but as long as you sign a monthly contract with 60 day notice, that should give you sufficient time to find your next tenant. Also I use the rentcast.io website to analyze potential rent.

Best of luck.[/quote]

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