Month to Month Residential Rental Agreement
A month-to-month rental agreement may be a win-win for both tenants and landlords. Renting month-to-month is ideal for tenants who don't know how long they'll be in an area or who are waiting for another housing option to open up. They don't have to commit to staying in one apartment or house for a set amount of time. For landlords, offering month-to-month rental agreements can reduce the vacancy rate, especially in touristy areas or near college campuses. Landlords also can have more control over rents and get rid of deadbeat tenants more easily with month-to-month agreements.
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Paperwork
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Although some tenants and landlords feel comfortable making agreements with words and a handshake, everyone is better off when both parties sign a legal rental agreement. Rental agreements protect both parties and clearly spell out the terms of the lease. For month-to-month rental agreements, make sure that responsibilities are spelled out clearly. Make sure both parties are aware of who is responsible for yardwork and maintenance, who pays for utilities and trash pickup, how much notice is required for termination of the contract, and how much the security deposit is.
Pets
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Landlords often ban pets when offering a month-to-month rental agreement because pets cause more damage to properties. When a landlord must ensure that the property is rental-ready several times in a year, cleaning up after pets can become very expensive.
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Termination
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Landlords and tenants generally agree that notice of 30 days suffices for a month-to-month contract. Thirty days will give either party enough time to make arrangements for a new place to live or for new tenants to fill the vacancy. Remember that all rental agreement terms are up for negotiation, so feel free to amend the contract before you sign it if both parties would like more or less notice to terminate the contract.
Benefits for Renters
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Renters find month-to-month contracts appealing when they don't know how long they'll live in an area or when they need an interim place to live. Some people choose a month-to-month rental when they're building a house and don't know how long it will take. Others like to keep their options open, especially if their unemployment seems unstable. First-time renters or young people in school like to avoid long-term rental contracts so they can move if something better opens up or if they find new roommates.
Benefits for Landlords
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Landlords also enjoy the benefits of month-to-month rental agreements. In unstable housing markets, landlords hesitate to sign long-term leases when rents fluctuate wildly, just as people avoid locking their money into a longterm CD when interest rates are low or in flux. In states that have lenient bankruptcy laws, landlords sometimes find themselves struggling to pay their rental property's mortgages when a tenant declares bankruptcy and doesn't pay rent for months on end and can't be evicted. In states such as these, landlords actually gain security by signing month-to-month rental agreements, which allow them to terminate a contract when the renter falls behind in rental payments.
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References
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