{"id":20885,"date":"2025-04-01T15:00:33","date_gmt":"2025-04-01T19:00:33","guid":{"rendered":"https:\/\/www.renthop.com\/blog\/?p=20885"},"modified":"2025-04-01T15:01:30","modified_gmt":"2025-04-01T19:01:30","slug":"what-is-a-month-to-month-lease","status":"publish","type":"post","link":"https:\/\/www.renthop.com\/blog\/what-is-a-month-to-month-lease\/","title":{"rendered":"What is a Month to Month Lease?"},"content":{"rendered":"

Most folks generally think of a 12-month long lease whenever the topic of renting comes around. However, as we\u2019ve previously explored, lease terms can be anything that the landlord and the renter have agreed upon. Most renters will opt for the traditional 12-month lease agreement or longer 18-month to 24-month terms. However, some will opt for shorter terms. Depending on their needs, some renters may opt for a short-term lease (anything under a year)<\/a> or may even decide to go for a month-to-month lease agreement.\u00a0<\/span><\/p>\n

What is a month-to-month lease?<\/span><\/h1>\n

Unlike the traditional fix-term leases, month-to-month lease agreements are a type of rolling contract that automatically renew and continue for successive periods until either party provides a legal notice to terminate the lease. The timeframe for a successive period can be whatever is agreed upon, but usually, most agree on a month. Also known as periodic tenancy, these types of rental agreements are flexible and are not set with a predetermined termination date. This means the month-to-month lease could continue to be renewed for years. However, the lack of a predetermined termination date means that either party could terminate the lease at any given time, sometimes even after a single month of occupancy.\u00a0\u00a0<\/span><\/p>\n

Pros and Cons of renting month to month<\/span><\/h2>\n

Like any other type of lease, signing a month-to-month lease agreement has its pros and cons. The primary benefit of this type of lease agreement is its flexibility. Renters can terminate their agreement at any time, unlike typical fix-term leases, which may include a penalty for breaking your tenancy earlier. In some areas, renters remain liable for the remainder of their lease term unless they pay an early termination fee or find a new tenant to take over their lease or sign a new lease. For example, in New Jersey, it\u2019s a common practice for landlords to charge their tenants two months’ rent as an early termination fee. With a month-to-month lease, you do not need to worry about such penalties. This is a huge bonus that many desire; however, some downsides need to be considered.<\/span><\/p>\n

First, there are fewer protections for those who sign a month-to-month lease agreement. Landlords can make changes in lease terms right before each period term. Which doesn\u2019t offer much stability or security for the renter.\u00a0<\/span><\/p>\n

Can a landlord terminate a month-to-month lease without cause?<\/h3>\n

Next, it\u2019s worth noting that renters aren\u2019t the only ones to benefit from the flexibility to cancel. Landlords who approve and agree to this type of flexible rental agreement will also have the same flexibility to terminate whenever they want (with enough advance notice). For some renters, this may cause a lot of undue stress.<\/span><\/p>\n

Do I pay more in rent?<\/span><\/h3>\n

Landlords will typically reward renters who sign a longer lease with better-priced monthly rental rates. It\u2019s like buying wholesale or purchasing in bulk. The more you purchase, the more of a discount you may receive per item. Renters who sign a month-to-month lease will not benefit from such discounts. They will generally pay more out of pocket on a monthly basis.\u00a0<\/span><\/p>\n

Can my rent be increased every month?\u00a0<\/span><\/h3>\n

Yes, that is one of the main downsides to signing a month-to-month lease. Renters who sign a traditional fix-term lease are locked in at an agreed-upon rental price when signing their lease. Under this type of flexible-term lease, your landlord can increase your rent before your lease renewal period. Thankfully, most of these types of rental agreements will require that the landlord provides at least a 30-day notice prior to the rent increase. So if the increased rent is no longer doable, a tenant should have the opportunity to negotiate OR find a new rental situation.\u00a0<\/span><\/p>\n

Learn more:<\/p>\n