As you're considering your rental options, you will run into two primary rental or lease agreements. One is the monthly agreement and the other is the fixed term rental agreement. Here's what you need to know when you're trying to make your decision.
Monthly Rental Agreements
The monthly rental agreement, also known as a month to month rental agreement, offers the greatest level of flexibility. The agreement automatically renews at the end of each month. It will continue to renew until either the landlord or the tenant decides to terminate it. The amount of time required for notice is often defined in the agreement so long as it does not violate state law minimums. This may be anywhere from 7 to 14 to 30 days' notice, depending on your state.
Fixed Term Rental Agreements
The fixed term rental agreement is one of the most common rental agreements. The rental agreement itself includes a specific period of time for the period of the tenancy. This period can be for any amount of time that the landlord and tenant agree to, though many are either 6, 12, or 15 months. It could even be for a single month. In some cases, the rental agreement may include a renewal option, but the lease will not renew automatically unless you specifically agree to it. Termination of the agreement generally requires a minimum of 30 days' notice, and most of the time, you can get additional legal remedies or you may have to pay extra fees because of the breach in the agreement.
Both monthly and fixed term rental agreements can be appealing to tenants and landlords alike. The primary distinction between them is the fact that fixed term rental agreements do not automatically renew without a separate clause whereas monthly rental agreements renew automatically even if there is no separate clause.
We’ll guide you through creating a Rental Agreement, as either a fixed term or monthly agreement.
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.