A month-to-month lease is exactly what it sounds like – typically defined as a one month lease that auto-renews ‘monthly’ unless either party provides notice of non-renewal.
What notice period is given for a month to month lease?
For month to month leases, both parties are usually expected to give at least 30 days’ written notice (or a full month ahead), unless the lease agreement has another timeline (which must be followed). In some cases, local or state ordinances may also dictate how much notice must be given when it comes to a month-to month lease.
Who is a month to month lease suitable for?
A month to month lease can be good for people who either due to life circumstances or the unknown, cannot commit or do not wish to have a lease for a longer duration. Of course keep in mind there is a rent premium for month to month leases (i.e. it will cost more)
Also: If you know you will only be around for less than 30 days, it may be more worthwhile checking into a hotel where there is no lease.
What are the benefits of a month to month lease?
- Greater flexibility – you can change your plans quickly without having to worry about hefty lease breakage charges.
- Upgrade or downgrade on demand – if you are not happy with a particular apartment, you can easily upgrade or downgrade without having to worry about breaking a lease.
- Great for new cities – if you are transitioning to a new city and unfamiliar with areas, this is a great way to try out the area without making any commitments.
What are the cons of a month to month lease?
- Premium in rent – As mentioned above, since you are not committing for a long term and in exchange for the flexibility, month to month leases usually command a premium in rent
- Rent and term fluctuations – Since there are no long term contracts, in theory your rent could increase every month (provided notice is given).
- Unfurnished – Since most month to month apartments come unfurnished, you will have to bear the cost of furnishing them, even if you are only there for a short while.
If you expect to be in a particular city for a while, it may be better to consider a 4 or 6-month lease that offers a good balance of cost and flexibility without locking you in for the long term.