What Is a Month-to-Month Rental Agreement?
A Month-to-Month Rental Agreement - also known as a Tenancy-at-Will - is a written contract between a landlord and a tenant that gives both parties an opportunity to alter or terminate the agreement unilaterally at the end of the month. This document is not only used to rent houses, apartments, or rooms, it is needed to rent various equipment, vehicles, land, etc. Additionally, you can create a rental agreement for a college apartment or a vacation home. These documents do not have a duration clause, and both parties can cancel it, usually by recurring to a 30-day notice.
There are different requirements for month-to-month rental agreements in the US states. State laws differ in relation to such provisions as security deposits and eviction proceedings, among others.
How Does a Month-to-Month Rental Agreement Work?
If you, as a tenant, require flexibility and mobility in your living situation, a tenancy at will can be the best option for you. Likewise, there is a clear advantage for the landlord who can charge more for rent every month. So, if you do not want to commit to a 12-month or 18-month lease (when working on a temporary job, working in the area for a short time or simply being unsure of living in a specific neighborhood), a month-to-month agreement can be just right for you.
A month-to-month tenancy is often confused with a lease agreement. Both documents are completed prior to renting property, they detail the rights and responsibilities of the parties, and include necessary provisions to ensure the landlord and the tenant are protected. However, the terms of the lease cannot be changed unilaterally. When it comes to the rental agreement, both parties have the right to alter the terms and conditions of their contact at the end of each month - for example, the landlord may raise the rent, or the tenant may give the notice to leave the property.
How to Write a Month-to-Month Rental Agreement?
Month-to-month rental agreement templates usually contain the following provisions:
- Names of both parties;
- Description of the property;
- Price of rent and the rent schedule;
- Rights and responsibilities of the landlord and the tenant;
- Security deposit clause;
- Number of the people able to use the property;
- Sublease clause;
- Requirements concerning the utility payments, maintenance, and upkeep;
- Signatures of both parties and the intention of both parties to sign a legally binding agreement.
Bear in mind that the terms of the agreement can be renegotiated every month, which is advantageous to the landlord and the tenant, especially when the latter needs to stay in the apartment for a short period of time or wants to rent a car for a month. Does not matter if you are a landlord or a tenant - consider all the factors before you decide that a month-to-month lease is the best option for you.