Month-to-month lease agreements provide both the landlord and the tenant with flexibility, but as with anything they also have some down sides
Pros for Tenants:
- Flexibility to move - one of the most common reasons for a tenant to sign a month to month or opt to go month to month is so they have the ability to move quickly.
- No specific end date - unlike a long term lease agreement, month to month leases allow you to give a normal (typically 30-60 day) notice and you aren’t burdened by lease break penalties
- You can (usually) switch to a long term lease -a lot of owners give the option to sign a longer term lease if plans change
- Can look for a home - this is often an ideal option for those looking to purchase or having something built but aren’t 100% sure when that will happen.
Cons for Tenants:
- Short Notice to End the Lease - Just as a tenant only has to give a normal notice (typically 30-60 days), that is all an owner has to give as well
- Fluctuating Rent Prices - landlords often charge a premium for a month to month lease due to the risk factor
Pros for Owners:
- Can Get Tenants Out Quickly - This gives owners the ability to give a normal notice to the tenant.
- Charge Higher Rent - Month to month leases are limited, so a lot of owners will charge a premium to allow this
- Keep quality tenants - Sometimes tenants request a month to month lease for whatever reason and landlords allow it to keep good quality tenants in their properties that are worth the risk
- Can Increase Rent - another benefit is you can increase rent with just a standard 30 day notice (instead of waiting until the end of the lease term).
Cons for Owners:
- Less stable/ lack of security - You are never really sure when the tenant will give their notice.
- Prepare for a vacancies - Since the tenant can give a notice at the end each month you always have to be prepared for it
