How does a month-to-month lease work?

Written by cellina laforey
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How does a month-to-month lease work?
(Month to Month Lease)

A lease is a legally binding contract between a landlord and a tenant, no matter how long the term of the lease. Therefore, a month-to-month lease has the same legal weight as an annual or two-year lease.

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Introduction

A lease is a legally binding contract between a landlord and a tenant, no matter how long the term of the lease. Therefore, a month-to-month lease has the same legal weight as an annual or two-year lease.

Terms and Conditions of a Lease

A lease outlines the terms and conditions by which the landlord is willing to rent the apartment. By signing the lease, the tenant agrees to live by the terms and conditions as outlined in the lease agreement.

The agreement outlines pertinent information such as the address of the premises, amount of rent, when the rent is due, late payment charges, whether or not utilities are included, length of the lease and more. If there are any sticking points in a lease agreement, they can be modified as long as both parties agree.

Advantages of a Month-to-Month Lease

The length of the lease depends, on the most part, on the landlord and tenant relationship. Some landlords prefer to have a month-to-month lease with a new tenant until they become more comfortable with the tenant. If a tenant is a poor tenant and does not pay the rent on time and abuses the property, the landlord is not obligated to endure the tenant's behaviour for longer than 30 days, since the lease is on a month-to-month basis.

There are also occasions when tenants prefer month-to-month leases. Tenants who are transient, for example, may only want a month-to-month lease. Their job may require them to move often, so they don't want to be legally obligated to live out the term of an annual lease.

Disadvantages of a Month-to-Month Lease

Tenants and landlords looking for long-term relationships and security shy away from month to month leases. Depending on the housing market, sometimes its difficult to get reliable tenants, while other times its difficult for tenants to find quality affordable housing.

An annual lease offers security for tenants wanting to remain in an apartment just as it does for a landlord wishing to keep a good tenant.

The one thing that month-to-month and an annual leases have in common is that each party has to give the other party ample notice (usually 30 days) if they wish to terminate the landlord/tenant relationship.

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