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No matter the reason, a month-to-month rental will allow you to enjoy the perks of renting without having to commit to a 12- or 18-month lease. While this may seem like a convenient option for renters, a month-to-month rental agreement is not for everyone.

Flexibility for the Renter and Landlord

A month-to-month rental agreement gives both the renter and the landlord flexibility. In some cases, this flexibility can benefit both parties, but in other cases, it gives one party an advantage over the other.

For renters, a month-to-month lease gives you the flexibility to move out without any penalties in just four weeks. A typical 12-month lease comes with the stipulation that if you break the lease and move out before the 12 months is up, you will pay an early termination fee.

For landlords, month-to-month leases allow you to charge more for rent each month. Because the renter has the flexibility to move out on a whim, you take on a much greater risk by signing a month-to-month lease. You also have the option of terminating a lease whenever you choose once you have given a 30-day notice to the tenant.

Month-to-Month Rental Agreement

A monthly rental agreement is not unlike a long-term 12- or 18-month lease. The biggest differences are in the duration of the lease and when the rent is to be paid.

We offer a Lease Agreement template that you can use to create a month-to-month lease for tenants. This template can also be customized and used for 12- or 18-month leases as well.

A standard rental agreement will include the following:

  • The duration of the lease
  • Whether or not the lease will automatically renew (common with month-to-month agreements)
  • The rent schedule, including due dates
  • The price of rent
  • The name(s) of the tenant(s), landlord, and property managers
  • Security deposit information
  • The penalties for late rent payments
  • Pet and guest policies
  • Tenant privileges, such as parking
  • A clause on property damage

A longer lease may also contain the conditions for early termination of the lease, but with a month-to-month agreement, this may or may not be included. Generally, tenants are required to give a 30-day notice before moving out.

The landlord also has the option of terminating the lease and giving the tenant a 30-day move out notice. Renters need to keep this in mind before signing a month-to-month lease. While it will provide you with the flexibility to move whenever you want, it will also give the landlord the option to raise your rent or terminate your lease at any time.

This article contains general legal information and does not contain legal advice. Rocket Lawyer is not a law firm or a substitute for an attorney or law firm. The law is complex and changes often. For legal advice, please ask a lawyer.


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