Simple monthly rental agreement

Written by denise brandenberg
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Simple monthly rental agreement
Some people rent apartments on a month-to-month basis. (apartment for rent image by dead_account from

In a shaky economic climate or because of individual circumstances, many people choose to rent an apartment or house rather than entering into a long-term mortgage contract. The benefits of renting typically include lower monthly payments, flexibility and a larger number of choices when it comes to location. Landlords typically offer the option of monthly rental agreements or long-term leases. Familiarise yourself with the pertinent facts about monthlong rental agreements before signing one.

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Month-to-month rental agreements, also commonly known as periodic rental agreements, and leases, or long-term rental agreements, are the two most common types of apartment rental contracts. Periodic rental agreements that require one rent payment a month are considered simple monthly rent agreements. According to the California Department of Consumer Affairs, monthly rental agreements typically expire at the end of each month. At this point in time, the renter is usually able to renew the agreement for a consecutive month, if he chooses.

Terms of Agreement

Simple monthly rental agreements have many features similar to long-term apartment leases. According to a sample monthly rental agreement on Max Info, most agreements include the tenant's full legal name, the agreed-upon monthly rent amount and the day of the month the rent is due. Other items that are typically included on a simple agreement are the occupancy rules and how utilities bills will be handled.


Most monthly rental agreements do not state how many months the agreement will be in effect, and the majority of tenants can remain in the same unit as long as they continue to pay the monthly rent. These types of agreements work well for travelling employees who move from work site to work site every few months. They also work well for people who are trying to buy a house and are simply waiting for the right opportunity. Month-to-month rental agreements allow the tenant to move the following month without having to pay expensive fees to break a longer-term apartment lease.


Some disadvantages of simple monthly rental agreements are that the landlord can decide to end the lease each month, which may make a renter feel unstable. Landlords can also raise the cost of rent each month on these types of agreements. Therefore, it might be more expensive in the long run to have a monthly rental agreement rather than a set-fee long-term apartment lease.

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