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The Downsides of Month-to-Month Leases for Landlords

By Property Management


In Texas, residential leases have a unique provision where they automatically convert to a month-to-month arrangement if neither party provides proper notice before the lease term expires. This means that if the tenant or landlord fails to give notice of their intention to terminate the lease or renew it for another fixed term, the lease will continue on a month-to-month basis.

At Your Dream Real Estate property Management Company, our extensive experience in the Houston’s real estate market has shown that implementing a 30-day notice period for lease expiration notices yields the best results for both landlords and tenants. This timeframe strikes a balance between providing tenants with sufficient time to plan their next move while affording landlords the opportunity to efficiently prepare for the turnover process.

Additionally, this notice period allows property managers to promptly begin marketing the rental unit and conducting necessary repairs or renovations to ensure a smooth transition between tenancies.

While month-to-month leases can offer flexibility for tenants, they may not be the best option for landlords. In this blog, we will explore the reasons why landlords should carefully consider the disadvantages of month-to-month leases. From potential income instability to increased turnover rates, landlords might find that long-term leases are a more favorable choice for both their financial security and overall peace of mind.

Here are the 5 top reasons that you should not let the lease continue on a month-to-month basis.

1. Income Instability

One of the significant drawbacks of month-to-month leases for landlords is the potential for income instability. Unlike long-term leases, which guarantee a fixed rental income for a set period, month-to-month agreements leave landlords vulnerable to unpredictable fluctuations in rental revenue. If a tenant decides to move out with short notice, the landlord could face an immediate vacancy, leading to a financial gap until a new tenant is found.

2. Property Condition

At Your Dream Real Estate property Management Company, we prioritize proactive measures to ensure the satisfaction of both landlords and tenants. Before finalizing any lease extension, we conduct a thorough property tour to assess its condition. This practice allows us to identify and address any maintenance or repair issues upfront, preventing costly repairs in the future. By inspecting key aspects of the unit, we maintain the property’s value and enhance the tenant’s living experience. Our commitment to proactive property management fosters positive landlord-tenant relationships and minimizes potential repair expenses, providing our clients with peace of mind and a well-cared-for investment.

3. Higher chances of vacancy in slow seasons

Month-to-month leases can be particularly disadvantageous for landlords during slow rental seasons. In regions where there are predictable periods of decreased demand for rental properties, such as during holiday seasons or when local educational institutions are on summer break, landlords may face higher chances of vacancies.

During these slower periods, tenants on month-to-month leases might be more inclined to move out without giving much notice, especially if they find better deals or more attractive housing options elsewhere. As a result, landlords may struggle to secure new tenants quickly, leading to prolonged vacancies and potential loss of rental income.

4. Lower profitability for the landlord

Another notable drawback of month-to-month leases for landlords is the potential difficulty in adjusting rental rates to keep up with market conditions and inflation. Unlike long-term leases, which typically lock in rental rates for an extended period, month-to-month agreements provide tenants with more flexibility to negotiate or terminate the lease if they are dissatisfied with rent increases. As a result, landlords may hesitate to raise the rent, fearing that it could prompt tenants to seek alternative housing options, leading to higher vacancy rates and reduced profitability.

Over time, failing to adjust rental rates in line with market trends and inflation can have a compounding effect, resulting in lower profitability for the landlord. Long-term leases, on the other hand, often include provisions for gradual rent increases or adjustments at specific intervals, allowing landlords to maintain a fair market value for their rental property without sacrificing their financial interests.

5. Legal Challenges

Month-to-month leases can bring potential legal challenges for landlords. Local rental laws may vary, and some jurisdictions offer increased protection to tenants on month-to-month agreements. For instance, landlords might face difficulties in evicting tenants without a legally accepted reason, which could lead to prolonged vacancy periods and lost income.

At Your Dream Real Estate Property Management Company, we believe that open communication and well-planned lease expiration notices contribute to building positive landlord-tenant relationships and optimizing the overall success of the rental property.

Not Renewing lease

By Property Management

What Is a Lease Non-Renewal? 

A lease non-renewal is notice from one of the parties in a lease to the other that they do not intend to extend the lease for another term. If for any reason the landlord and tenant decided not to renew the lease, per the lease agreement we have the right to list the property on the market to find new tenants.

Pre listing tour:

We will need to tour the home before listing it on the market, take pictures, leave the lockbox and sign at the property so the prospects can tour the home with their agents.

Safety of tenants:

All showings are accompanied by licensed realtors and the keys are not accessible by unlicensed individuals

During the showing

We encourage tenants to:

  • Leave during showings on the other hand we do our best to group the showings for tenant’s convenience.
  • Not let anyone without an agent or notification to enter the home
  • direct all the enquiries to us.
  • Not leave valuable items and any medication or important documents accessible
  • Lease has the option of not listing the home at a cost if tenant accepts to pay the fee stated in the lease
  • The tenants will receive notifications ahead of time and the landlords will also get notified
  • In some cases the landlord might decide to wait until the tenant moves out and then list the home on the market.

Renewing the lease

By Property Management, ProTalk, Tenant

What is Lease Renewal?

Lease renewals refer to the process when a tenant would decide to extend their lease and continue living on your property.

The standard Texas lease automatically renews if no one takes any action.

Usually the lease gives each party 30/60 days to notify the other party of their decision. Landlord or tenant can decide if they want to extend the lease or not.

When to Renew:

It can be common question for any landlord when they get close to the end of the lease: Should I renew the lease with the tenant?

At your Dream Real Estate we recommend keeping good tenants, if the tenant meets all the following requirements: 

  • Has been paying rent on time
  • Look after the property as if it were their own. 
  • Knows how to communicate and be responsive 
  • If they haven’t had issues or any other breaches of the contract 

we recommend renewing.

Other Conditions:

We need to check the condition of the property.

To add another level of safety we take the following steps:

  • We schedule a time with the tenant and tour the property
  • We make sure that everything is in good working order
  • Check and make sure no evidence of upcoming major repairs is seen
  • Check what tenants might not see like mold, roof, gutters, fence, etc.


Step 1: Checking the market rent, then we discuss it with the landlord and get their approval for the new rent amount. 

Step 2: Review the tenants history of communication, payments and notes to see if we should decide to extend the lease or not. If not we will send them the required notice per the lease requirement time frame. (Check Not renewing lease)

Step 3: We offer the new rent and terms to the tenant and if they accept it we schedule a time with them to tour the property and take pictures. This is just to make sure that everything is in good condition.

Step 4: We’ll check the report and see if any repair is needed. If everything is in an acceptable condition we’ll send the documents to the tenant and get their signature. 

Once the tenant signs the documents, we share the report and documents with the landlord.

The tenants will also receive a copy for their records.

What a Houston landlord need to know about having a pet in their rental property

By Energy Corridor, Fulshear, Houston, Landlord, Memorial, Pasadena, Pearland, Property Management, ProTalk, Richmond, Spring, Sugar Land, Tenant, Westchase

Hello landlords I have a scenario for you, let’s say you are managing your own rental property and after a few weeks of vacancy you find the perfect tenants. You feel confident about renting your home to them but they say hey, by the way, I have a pet which is a german shepherd. You can meet my dog and you’ll see how well trained and smart the adult german shepherd is.

Would you still rent the property to the tenants?

If you know about dogs you’ll know this dog most probably won’t cause any damages. You also can charge a pet fee, pet deposit and monthly pet rent that seems to be a good deal right?

Here lies the problem. Did you know that your home owner’s insurance can cancel your policy  because this dog lives on the property?

So are you going to deny the qualified applicants just because of their dog?

If your answer was yes. Hold on!! We have a solution for that.

Contact me and let’s discuss these situations in further detail.

 Here at Your Dream Real Estate we take the screening process to the next level by qualifying the clients and their animals (service animals included).

All you need to know about Earnest Money

By Buyers, ProTalk, Sellers

In today’s pro talk we will talk about Earnest Money And the role it plays in a real estate transaction.

What is earnest money in a Real Estate Transaction?

Earnest Money is an important part of home buying process.Once the buyer & seller come to a final agreement in a real estate contract,the buyer will deposit an agreed amount as a show of good faith to purchase the property

How much money is enough for Earnest Money?

The amount is normally based on a percentage of the sales price. However, the buyer can elect to pay more in order to make the offer stand out and to increase his/her chances of buying the property under special circumstances.

Who holds the earnest money?

The earnest money does not go the the seller, rather it goes to an escrow agent such as a title company who holds it till the purchase is consummated. The buyer has 3 calendar days to deliver the money. Earnest money will be credited to the buyer at the closing of the transaction

What happens to earnest money if the transaction falls apart?

The earnest money is typically returned to the buyer if the buyer decides to terminate the contract for any reason during what is called the option period. Unfortunately, things may go south after the option period is exhausted and dispute arises over earnest money. At this time, the terms of the contract determines who receive the earnest money. Here is the bottom line: As a buyer, be diligent about your contract deadlines and give proper and timely notice of your intention to cancel the contract. As a seller, you will not automatically get to keep the earnest money if the buyer drops out, but you may be entitled to it when a buyer breaches the terms of the contract & does not complete the purchase.

In closing, whether you are a buyer or a seller in a dispute over earnest money, we will discuss the role of earnest money and other terms of the contract with our clients at the beginning of the process to prevent any unexpected surprises.

End As always, your dream team is committed to providing you with tools, education & excellent care. Think of us as one stop-shop for all your real estate needs. If you liked this video please subscribe, like and follow us on social media and share this video with anyone who can benefit from it.

Neighborhood pros, Introducing Lakes of Bella Terra in Richmond, TX

By Buyers, Fulshear, Houston, Richmond

Our today’s Neighborhood Pro comes to you from Lakes of Bella terra in Richmond Texas. 

Our mission in this program is to introduce new communities around Houston metro area to you.


Located in the city of Richmond ,Tx, this community is on North of Bellaire blvd, South of Westpark Tollway. The Grand Parkway 99 is on the East and 723 rd is on the West side. Cinco Ranch is on the North side & a few minutes drive to City of fulshear.

Residents, on average, spend 31 minutes getting to work and most frequently by car.

Shopping locations are just off Westpark tollway & Grand Parkway & you will find everything you need just down the road.


Currently the following Builders are active in this community:

  • Ashton Wood Homes
  • K. Hovnanian Homes
  • Perry Homes
  • Sitterle Homes
  • Chesmar Homes


The community is zoned to the popular Lamar Consolidated Independent School District(LCISD) and residents enjoy the benefit of low school taxes & low number of students in class rooms. The followings are the schools for the community:

Elementary: Hubenak elementary

Leaman junior middle school and

Fulshear high school


Lakes of Bella Terra has amazing amenities including:

  • Hiking & biking Trails for your active lifestyle.
  • Resort style pool with backsplash: Fun in the sun. The kids will never want to leave. 
  • Community center: Enjoy a peaceful day, or make memories with friends inside of the community center.
  • Dog park: abundance wide-open spaces for your pet. 
  • Lakes & open spaces: acres of lakes, giving a tranquil, peaceful atmosphere to this lavish community.


Lakes of bella terra is in 77406 zipcode which is an affluent area with a middle age population in Richmond, Texas.

It is family friendly with medium population density. The total population of 77406 zip code is 35,563 and 89% of homes are owner occupied. 43% of people living in this area have attended college.

Another interesting fact is the median age is 37 with an average household income of $124 k.

The easy access, convenient location, tax rate of 3.344%, top rated schools, and home prices as low as $240,000 and as high as $1.5 m, makes this community an ideal future residence for you and your family.


We hope you have enjoyed this show & if you think this is your desired part of Houston metro area to call home,contact us for a private tour. Our presentation will continue in different parts of town.We ask for your feedback and we want to know what areas of Houston you are interested in. 

We are committed to providing you with useful information and excellent care. Consider us a one stop shop for all your real estate needs. 

Do I need a Realtor when buying a new construction?

By Buyers, Houston, Katy, Memorial, Pasadena, Pearland, Richmond, Spring, Sugar Land, Westchase

Some buyers do not believe in using a Realtor services to buy a new construction. We are here to discuss some important things that you should know.

The Builder’s representative will take care of me.
If you are thinking that the builder’s salesperson will take care of everything, you may consider some facts. The salesperson represents the builder’s interest. Builders use their own contract which may not be easy to understand. The salesperson may not highlight pros & cons of a particular model home.A Realtor is able to back you up and navigate you through this preliminary stage and assist you with your purchase with confidence. Most importantly, our service is free of charge when a buyer hire us.
How frustrating it may be if you are a first time home buyer and your home is being built from the ground up! Did you know there are 11 stages from start to finish the home, A good Realtor will keep you updated at every stage.

Another reason why hiring a Realtor to help you is our special relationship with them. Reputable builders love to work with realtors. They realize the value of working with Realtors. We are a good source of business for them. We are the first to know about their new products, promotions,and any other updates. They understand our expectations and the importance of caring for our clients.

I can negotiate myself
Some say they can negotiate with the builder and there is no need for a Realtor. We say why not have extra leverage with having a Realtor on your side. Our negotiation with builders are done behind the scenes and on your behalf. Builders most of the time accept our terms & give us concessions we ask for. We must also mention that good builders will not discount the price of the house by the commission that is owed to realtors.That is under their marketing budget which can not offset the price of the home you are buying.

You don’t know what you don’t know.
Realtors have gone through lots of homes & transactions. We look at things from a different angle in a home you are buying. Home buying gets emotional at times and we do our best to keep you focus on features that are most desirable & make economic sense. We want you to receive the maximum out of your investment.

And last but not least, the big prize is here.
Here is the best part for having a Realtor on your team. Some of us out there will reward you by sharing a portion of our commission toward your closing cost when is needed. We become your own concierge exclusively working for you.

Whether you are in Houston, Katy, Richmond, Fulshear, Sugar Land, Missouri City, The Woodlands, Spring, Humble, Pasadena, Pearland or Fresno contact us to get more details and get the home buying started.

First step to start your home buying process in Houston Texas

By Buyers
First step to start your home buying process in Houston Texas

Today’s Pro Talk is about the first step buyers need to take to purchase a home. We recommend that you have an idea of your purchasing power  and how much of a home you can afford. You need to apply for a loan with a financial institution to find out how much money you will receive as a loan. Having a letter from a lender with a predetermined loan amount, will help you not to waste your time looking at homes which will not fit your budget.

There are two such letters provided by the lenders, pre-qualification and pre-approval. We will explain the difference between Pre-Qualification and Pre-Approval letter.

Getting pre-qualified for a loan is a very easy process. You provide the lender approximate income, the amount of debt you have, your work information, and any other details from your credit history. The lender uses this information to calculate how much money you are eligible to receive.

The pre-approval letter is more involved than pre-qualification process. The reason being, you will have to fill out a loan application and provide necessary documentation. The lender will examine and verify your financial situation including your credit report, your employment history,and your income and decide how much you can borrow and what rate to offer you.

Benefit of pr-eapproval letter: It not only provides you with peace of mind  and more certainty to borrow money but also increases your purchasing power. As an experienced Realtors,We don’t recommend to use pre-qualification letter as a tool to start the buying process.

As part of our services, we have access to lenders with different loan products and we can recommend one to you depending on your financial needs  and situation.

If you like this video, please like, follow, subscribe and share with anyone who could benefit from this information.

Contact us to get started. (832) 404-2030
Ext 2033 & 2037
[email protected]

An introduction to Renovation Loans

By Buyers, Energy Corridor, Fulshear, Houston, Katy, Memorial, Pasadena, Pearland, Richmond, Spring, Sugar Land, Westchase

In today’s Pro talk we introduce you to renovation loan.
You have seen lots of homes and finally you find one that fits all your needs but some areas of the house needs updating. Perhaps is the kitchen overhaul or the bathrooms updating. You have to decide whether you want to pass it up because of repairs or proceed with the purchase.

Well Joady Rubin with Certainty home loans will provide a solution to renovating your project.
This type of loan is easy to obtain. You will close the loan upfront and you will do the renovations after you close on the loan. The loan process consist of purchase price plus your renovation budget. This loan is based on the finished home with renovation done. This allows you to build some equity and be able to enjoy the home in the neighborhood you like and with the features you like to have.

Represented by a Houston Realtor.

Thanks for watching another episode of our Pro talk show. Renovation loan is the perfect solution for your project.

Connect with us.We always do our best to provide you with relevant resources and introduce professionals with their services. Share this video and contact us for all your real estate needs.

Property Management Houston – Application – Your Assurance

By Property Management

Houston property management Houston, TXProperty Management Houston Tenant Application Screening Process

As a reliable property management firm for the Houston area, Your Dream Real Estate’s innovative tools and strategic marketing is designed to 1) showcase your property and 2) attract the most desirable tenants.

Houston Best Property Management Tenant Screening

With Your Dream Real Estate, a property management firm in Houston, our screening process includes:

  • Conducting background checks
  • Pulling credit reports
  • Investigating criminal backgrounds
  • Determining a history of eviction, broken leases or foreclosures
  • Checking employment and income

Integrity Property Management Assures Best Tenant Placement for Houston Properties

Integrity in our Houston property management practice means that our property managers will communicate with the property owner regularly, so that they are up to date on every detail of their property.

Since our professional property management services include conducting periodic inspections of the Houston properties that we manage, there are two specific instances in which we tell potential tenants not to apply:

  • If a tenant is not okay with us periodically stopping by and taking interior pictures.
  • If they are not okay with us placing a key box on the property during the last 30 days of the property lease agreement to show the home. Your Dream Real Estate’s lease agreement is very specific that we will be marketing and showing the home prior to the current lease termination.

Houston Professional Property Management Business Relationships

As Texas licensed real estate agents in the state of Texas, our Houston property management services represent the property owner first and foremost. As property managers, we are the landlord. The tenant and landlord relationship is a business relationship.

Our reliable property management communication is open 24/7 for tenants and a businesslike and courteous attitude is expected. Anyone who is disrespectful, or in general, displays an attitude during the showing, or application process, may mean that we deny the application. See our complete application process and screening criteria at (

Houston’s Best Property Management is FFHA and FCRA Compliance

Your Dream Real Estate Property Management is in full compliance with FFHA, Federal Fair Housing Act, and FCRA, Fair Credit Reporting Act. Your Dream Real Estate, a property management company in Houston, is also in full compliance with all state and local fair housing laws.

Full Houston Property Management Application Criteria

Please download and read carefully our full property management application process. We also highly encourage applicants to view the property prior to applying. Click here for our Houston Property Management application.

Your Dream Real Estate Houston Property Management looks forward to a professional business relationship with both tenants and owners for Katy, Houston, Energy Corridor, Spring, Westchase, Memorial, Richmond, Sugar Land, Pearland, Pasadena, Fulshear, and beyond! Contact us for all your owner or tenant needs.