Month-to-Month Lease Agreements

What is a Month to Month Lease Agreement?

A month-to-month lease agreement, also known as a month-to-month rental agreement or tenancy-at-will, is a type of contract between a landlord and a tenant that allows either party to terminate the agreement with a notice period of typically 30 days. 

Unlike a fixed-term lease with a precise end date, month-to-month leases are usually automatically renewed. The contract continues until either party decides otherwise, providing a written termination notice.

Month-to-Month Leases By Type

Room

Month-to-Month Room Rental Agreement

Used 4,872 times

Easily create a legally binding document when renting a room on your Property using this free and customizable month-to-month room rental agreement template.

Use Month-to-Month Room Rental Agreement

By State

Month-to-month leases can vary significantly from state to state due to differences in landlord-tenant regulations. Make sure to customize the terms and conditions in your lease rental contract template according to your local laws and regulations.

Key Features of a Month-to-Month Lease

Month-to-month leases are flexible for both parties and therefore the agreement terms often touch on its easy termination process and auto renewal in case both parties decide to prolong the contract. Specifically, the key features include:

• Easy termination. Both the landlord and tenant may sign off the lease with proper notice, providing more flexibility for each party. Usually, it’s the end of the month.
• Auto Renewal: If neither party provides notice to terminate, the lease automatically renews for another month.
• Notice: The agreement usually requires a specific notice period, often 30 days, but this can vary by jurisdiction and the terms of the agreement.
• Rent Payment: Rent is typically paid on a monthly basis, and the terms of the agreement, including rent amounts, can be adjusted with proper notice.

Fits for any rent: Easy termination and clear notice terms make month-to-month agreements fit both short-term (monthly duration) and long-term leases when the duration is uncertain.

How to Write a Month-to-Month Lease Agreement

When drafting a month-to-month lease agreement, there are several key clauses that differ from a standard lease agreement and are crucial for month-to-month arrangements. Here are some critical clauses to include:

Lease Term

Clearly state that the lease is month-to-month, specifying that it automatically renews at the end of each month unless either party provides proper notice to terminate.

Termination Notice

Specify the notice period required for termination by either the landlord or the tenant. Common notice periods are 30 or 60 days, but this can vary by jurisdiction.

Rent Amount and Payment Terms

Clearly outline the monthly rent amount and the due date for payments. Include any late fees for overdue rent and the accepted methods of payment.

Rent Increase Clause

If the landlord has the right to increase rent, detail the process, notice period, and any limitations on the frequency or amount of such increases.

Security Deposit

Clearly state the amount of the security deposit, its purpose, and the conditions under which it may be withheld. Check the state-specific limitations on security deposit amounts.

Renewal Clause

Clearly state that the lease automatically renews on a month-to-month basis unless either party provides proper notice to terminate. Include any conditions for non-renewal.

Inspection and Maintenance

Outline the responsibilities of the tenant and landlord for maintenance, repairs, and property inspections. Clarify any requirements for giving access to the property.

Pets, Guests and Smoking Policies

Include clauses specifying whether pets or long-term guests are allowed, any restrictions, and if applicable, details on deposits or additional fees.

Governing Law

Specify the governing law of the lease agreement, ensuring that it aligns with the state laws where your property is located.

When to Use a Month-to-Month Lease Agreement

Month-to-month leases are typically flexible, so you can use them for a range of scenarios like short-term or trial periods, upcoming property selling, and temporal tenant assignments like work contracts or students.

• Short-Term Rentals: When a tenant needs housing for a limited, unspecified duration.
• Trial Period: If you want to evaluate a tenant or vice versa before committing to a long-term lease.
• Selling Property: If you aim to sell the property soon, a month-to-month lease agreement lets you terminate the lease quickly without losing your profit.
• Temporary Employment: For tenants with temporary job assignments, seasonal housing like tourism, or students.
• Market Conditions: In rental markets where there is uncertainty about future rental prices or market conditions, a month-to-month lease allows for more frequent adjustments.