Although the most popular type of lease is one that lasts a year or longer, there are many who prefer a month to month lease because it offers greater flexibility. While long, fixed term lease agreements do bring a measure of security to the landlord in having a consistent source of rental payments and the tenant in terms of not having their rent go up for a period of time, a month to month agreement can be beneficial to those who are more interested in flexibility and not security.
Of course, the month to month lease agreement will need to be in the best interests of the landlord and the tenant, but given the circumstances there are usually many people who are in need of such terms. While obtaining a month to month lease will generally require a good rental background, they can offer quite a few benefits especially for the tenants who need more flexibility in their lease agreements.
The Advantages for Tenants
On the Move: If your job requires you to change locations frequently, then a month-to-month lease is in your best interests. This means that you can give relatively short notice to your landlord and move out without incurring any additional penalties or breaking your lease.
The Sale of the Home: Quite often, people who are in the process of moving will have their home sold before they can find a new one. Such circumstances mean that they are without a residence for a short period of time. Therefore, having a short term month to month lease can be in their best interests since they plan on purchasing their new home as soon as possible.
Test the Waters: For tenants who may be unfamiliar with the neighborhood in which they are moving or want to know the landlord better before making a long term commitment, then having a month to month lease will be in their best interests. This way, you can test the waters without being stuck in a long term agreement, allowing you to find another place to live in a short period of time.
The Advantages for Landlords
Poor Tenants: If the tenants turn out to be less than desirable, the landlord can simple end the lease with 30 days notice. For many landlords, this is highly desirable because they can rid themselves of bad tenants quickly and without incident.
Rent Increases: If the property is in high demand, it will be easier for a landlord to increase their rent. Of course, if the property is not renting well, then they may offer discounts or other incentives that a month to month lease can provide. In either case, a landlord can react more quickly to changing situations with a month to month lease.
Vacation Property & College Communities: This is a natural for month to month leases as tenants will tend to only stay a short period of time. For landlords who notice this trend or have good vacation property, then a month to month lease system can work wonders for them.
While the needs of both the landlord and tenant will have to be met, the month to month lease is one that certainly offers many advantages.