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