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