Free Month-to-Month Lease Agreement Templates

A month-to-month lease agreement is a legal document that acts as a short-term contract and highlights the agreement between a landlord and a tenant to rent or lease a residential property monthly. Unlike a long-term residential lease agreement, the month-to-month lease agreement allows the tenant to occupy the residential place on a per monthly basis instead of for a year.

As the landlord, once you have obtained this signed agreement, the tenancy of the individual renting your residential property will automatically renew every month. To end the contract, either you, the landlord or the tenant should send a 30-day notice in advance. Therefore, it means that the contract has no specific end date.

The short-term nature of this agreement gives room for you as the landlord to charge higher monthly rent since the tenant might vacate at any time. However, a 30-day notice is also required before you can increase the tenant’s rent. Although the month-to-month leases are short contracts, they contain the clauses also found in the standard leases. The clauses include instructions on utilities, pets, maintenance, rent, guests, etc.

As the landlord, you can also use a monthly lease addendum to change the existing traditional lease into a month-to-month leasge agreement. In the case that more than one tenant signed the original lease; all the parties must sign the addendum for it to be valid. All month-based contracts must adhere to the state-required notice periods if an amendment or termination of such a lease is to occur.

Writing a Month-to-Month Lease Agreement

As the landlord, you need to know how to craft a proper month-to-month lease agreement. Ensure all the following components have been included and the proper information has been filled in to make the form complete.

The steps in writing a month-to-month lease agreement are as follows:

Identify the landlord and tenant

As the landlord, write your full names and ensure that the tenant also indicates their full name in the lease agreement that will serve as their legal identification throughout the leasing time period.

Specify the premises

Indicate the location of your premises and the type of residential property it is; this could be an apartment, a house, or a room for rent. The address of your rental is also important and should be specified in the month-to-month lease agreement.

Determine the rent

At this step of crafting the lease, indicate how much you plan to charge the tenant on a monthly basis. Ensure you research first and offer them a great rate that still brings you profits.

Date and parties

The form must mention the date that the parties met and the property was leased on a month-to-month basis. As the landlord, you should clearly indicate the starting of tenancy date which is the date when the tenant occupied the property.

Transfer of rights

This information clarifies that you as the landlord have given the tenant rights to your premises, that could be categorised as an apartment or room typically.

Term of lease

Here, you should clearly define the minimum duration of time the tenant is expected to remain in that particular rental unit. In this case, the minimum amount of time is one month.

Security deposit

Ensure that the lease specifies the amount that the tenant must pay as a security deposit to indicate their intention of moving in and taking care of the rental property. Also, include the terms of the security deposit, whether it is refundable and non-refundable.

Rent payments

In the rent payments section of the lease, state the date when you expect the rent to be paid. It is usually at the beginning of the month for a month-to-month lease agreement. 

Eviction

As the lessor, you should also clearly establish the terms of eviction in the lease agreement. You can mention the conditions that might lead to the tenant’s eviction and indicate the number of days for an eviction notice.

Utilities

Utilities in a lease include things like gas, electricity, waste removal, garbage recycling, and many more. The month-to-month lease addendum should indicate whether the tenant or landlord should pay for these utilities.

Mailbox/key

The lessor can have a copy of the key since the premises belong to him or her. However, the landlord does not have access to the tenant’s mailbox. This type of information should be present in the lease.

Assignment/sublet

The agreement should also clearly establish if it is an assignment or a sublease. An assignment of lease means that you as the landlord have handed over all the rights of the leased property, while a sublease means that you have transferred some of the rights of the leased property to the tenant.

Name a guarantor

In case the tenant does not meet the income requirements for leasing your residential property, he or she should name a guarantor. Having this step ensures that a third party will be held liable in case the tenant fails to pay their rent.

Note the security deposit

The lessor must indicate the amount of money that should be placed as the security deposit in the lease . In most states, the security deposit is equal to one month’s rent, and there are laws that govern the maximum amount you, as the landlord, can set as the security deposit.

The eviction process

The eviction process part is important to be specified when setting up a month-to-month lease agreement. It would be best if you wrote down how far in advance you must inform the tenant in case you decide to end the lease.

Condition of premises

Condition of premises section of the lease should establishe that the particular premise will be in a particular state from the date of the lease, for instance, empty or clean. This clause ensures that both the tenant and you as the landlord are informed of the State of the residential property before the tenant moves in.

Notice of injuries

As the landlord, you are required to inform the tenant of all obvious and hidden conditions that might cause them and their guests bodily injuries. You will be responsible for tenant injuries if they get hurt from situations that you are obligated by the law to fix, for example, a broken stair.

Abandonment

The tenant might decide to leave the property before the contract expires. For this clause, the landlord must be sure that the tenant has actually abandoned the property before they can lease it to another tenant.

Therefore, there should be a form of communication if the tenant chooses to terminate the agreement through the abandonment of the property and this condition should be specified in the lease.

Absence

In case the tenant is absent from the leased property for a particular period, you as the landlord might be free to terminate the lease and take back the property. Absence by the tenant might lead to maintenance problems that no one will detect and hence damage to your property.

Governing law

The governing law section of the month-to-month lease agreement should contain information about which jurisdiction’s laws apply to the contract. In most cases, any laws that apply to the agreement are of the State where the property is located.

Additional provisions

You can add extra rules and instructions regarding your rented premises in the lease. That way, the tenant is aware and is safe from breaking any laws.

Signatures

Both you as the landlord and your tenant should sign the month-to-month lease agreement to make it valid. The signatures section includes your and the tenant’s name, signatures, and the date of the amendment.

Free Templates

Download free customizable month to month lease addendum from below:

Month-to-Month-Lease-Addendum-Template_

Month-to-Month-Residential-Rental-Lease-Agreement-Sample_

MonthTo-Month-Addendum-Sample_

Month-to-Month-Lease-Agreement-Template_

    By states

    Pros and Cons of Month-to-Month Lease

    As a landlord, you may be wondering if a monthly basis rental agreement is worth the risk. Here is a list of pros and cons that will help you decide whether to choose the month-to-month leasing or stick with the traditional leasing method.

    Pros

    Following are the considerable pros of leasing on a month-to-month basis with the help of a month-to-month lease agreement;

    With lease agreement, you can charge more rent

    Since this monthly arrangement offers a flexible plan for tenants, as the landlord, you can charge the tenants more rent to prevent you from getting losses in case they decide to leave abruptly at the end of one month, which is a considerable pro as compared to an annual lease that renews on yearly basis. However, ensure you observe the laws in your State regarding increasing the tenant’s rent or give a 30-day notice to your tenant.

    Amendments can be made instantly

    With the month-to-month lease agreement; a new rental period starts at the beginning of each month. At this period, the landlord can choose to change any part of the lease, including increasing the rent.

    Enables you to remove bothersome tenants

    Since the agreement renews every beginning of the month, as the landlord, you can serve a notice of removal of only a month to the tenant for any reason. This way, the landlord is safe from troublesome tenants.

    Allow you to get the “perfect” tenant

    As a landlord, you might be afraid of venturing into a new project by going long-term already. Having a month-to-month lease agreement allows you room for trial to get yourself the perfect tenant for this business venture.

    Gives you the liberty to walk away

    With this type of agreement, you can choose to stay or leave the property management business completely. Since you, as the landlord, are not tied down by the annual lease, you can minimize the damage to your finances and leave.

    Cons

    There are a few considerable cons of a month-to-month lease such as;

    The agreement makes it hard to find good tenants

     The short-term nature of a month-to-month lease agreement with the possibility of termination of the agreement by the landlord at any time makes it hard to find quality tenants who are willing to stay for long.

    The contract offers no specific end-date

    The nature of a month-to-month lease agreement offers monthly renewal of the contract but no specific end-date. This means that the tenant might decide to leave your premises at any time, either early or as soon as the month is over, which can be considered a con in several manners such as the tenant’s involvement in criminal activity and damage to the lessor’s property etc.

    There is no assurance of off-season payment

     An off-season period means that the economy and business have reduced and are slower. With annual leases, the landlord is guaranteed that the tenants will still pay rent during off-seasons like the winter season. However, in the month-to-month lease agreement, there is no guarantee of payment as the off-season is not a prime renting period, which is a major con of this type of agreement for the lessor.

    Notice Period State Laws

    Every State has its own notice period for termination of the month-to-month lease addendum. The table below shows a list of the different notice periods for the different states.

    Note: In the table, LL stands for Landlord while TN stands for Tenant.

    STATEREQUIRED NOTICE
    Alabama (§ 35-9A-441)LL – 30 days
    TN – 30 days
    Alaska (§ 34.03.290(b))LL – 30 days
    TN – 30 days
    Arizona (§ 33-1375)LL – 30 days
    TN – 30 days
    Arkansas (§ 18-17-704)LL – 30 days
    TN – 30 days
    California (§ 1946)LL – 30 or 60 days
    TN – 30 days
    Colorado (§ 13-40-107)LL – 21 days
    TN – 21 days
    Connecticut (§ 47a-23)LL – 3 days
    TN – None stated
    Delaware (§ 5106)LL – 60 days
    TN – 60 days
    Florida (§ 83.57)LL – 15 days
    TN – 15 days
    Georgia (§ 47-7-7)LL – 60 days
    TN – 30 days
    Hawaii (§ 521-71)LL – 45 days
    TN – 28 days
    Idaho (§ 55-208)LL – One (1) month
    TN – One (1) month
    Illinois (735 ILCS 5/9-207)LL – 30 days
    TN – 30 days
    Indiana (IC 32-31-1-1)LL – One (1) month
    TN – None stated
    Iowa (§ 562A.34)LL – 30 days
    TN – 30 days
    Kansas (§ 58-2570)LL – 30 days
    TN – 30 days
    Kentucky (§ 383.695)LL – 30 days
    TN – 30 days
    Louisiana (CC 2728)LL – 10 days
    TN – 10 days
    Maine (§ 6002)LL – 30 days
    TN – 30 days
    Maryland (§ 8-402)LL – One (1) month
    TN – One (1) month
    Massachusetts (Ch. 186 §12)LL – 30 days
    TN – 30 days
    Michigan (§ 534.134)LL – One (1) month
    TN – One (1) month
    Minnesota (§ 504B.135)LL – Three (3) months
    TN – Three (3) months
    Mississippi (§ 89-8-19)LL – 30 days
    TN – 30 days
    Missouri (§ 441.060)LL – One (1) month
    TN – One (1) month
    Montana (§ 70-24-441)LL – 30 days
    TN – 30 days
    Nebraska (§ 76-1437)LL – 30 days
    TN – 30 days
    Nevada (§ 40.251)LL – 30 days
    TN – 30 days
    New Hampshire (§ 540:2)LL – 30 days
    TN – 30 days
    New Jersey (NJ 2A:18-56)LL – One (1) month
    TN – One (1) month
    New Mexico (§ 47-8-37)LL – 30 days
    TN – 30 days
    New York (§ 232-A & B)LL – One (1) month
    TN – One (1) month
    North Carolina (§ 42-14)LL – 7 days
    TN – 7 days
    North Dakota (§ 47-16-07)LL – 30 days
    TN – 30 days
    Ohio (§ 5321.17)LL – 30 days
    TN – 30 days
    Oklahoma (§ 41-111)LL – 30 days
    TN – 30 days
    Oregon (ORS 91.070)LL – 30 days
    TN – 30 days
    Pennsylvania (§ 250.501)LL – 30 or 15 days
    TN – 30 or 15 days
    Rhode Island (§ 34-18-37)LL – 30 days
    TN – 30 days
    South Carolina (§ 27-40-770)LL – 30 days
    TN – 30 days
    South Dakota (§ 43-32-13)LL – 30 days
    TN – 15 days
    Tennessee (§ 66-28-512)LL – 30 days
    TN – 30 days
    Texas (§ 91.001)LL – One (1) month
    TN – One (1) month
    Utah (§ 78B-6-802)LL – 15 days
    TN – No requirement
    Vermont (§ 4467)LL – 30-90 days
    TN – 60-90 days
    Virginia (§ 55.1-1253)LL – 30 days
    TN – 30 days
    Washington (§ 59.18.200)LL – 20 days
    TN – 20 days
    West Virginia (§ 55-248.37)LL – 30 days
    TN – 30 days
    Wisconsin (§ 704.19)LL – 28 days
    TN – 28 days
    Wyoming (No statute)No requirements

    Before You Lease the Property

    It is essential to know a few thing before you decide to lease your property. for Example;

    How much to charge?

    To determine the amount of rent that you should charge the tenant is an essential decision for you to make. If you charge too high, you will lose potential tenants, and if you charge too low, you will have to deal with too many applications and losses.

    As a landlord familiar with yearly leases, determining monthly leases is not difficult. The lessor basically needs to increase the percentage from 10% to 75 % to cater to the increased risk. The percentage increase is large but worth it. There are questions that will guide you in regulating and determining the best amount to charge.

    Consider the questions below when determining how much to charge for your month-based rent:

    What are your expenses?

    In the long run, leasing a residential property aims at earning a profit. To determine how much to charge, ensure that the amount caters to all your expenses as a landlord and gives you profit. The expenses may include taxes, insurance, loan payment, and much more.

    After putting all factors into consideration, then as a landlord, you can determine the lowest rate to charge your monthly-basis tenants. The landlord can then increase the rate as they so wish to cover their costs.

    Have you leased to the tenant before?

    In the case that the tenant you are dealing with has been paying you on an annual basis due to the traditional lease, changing to a month-to-month lease should not make you increase their rent tremendously. Finding quality tenants is tough, and there is no need to increase rent and risk losing them. Increasing the rent by 10% is safe and okay for this particular tenant.

    However, increasing the rent is okay for a new tenant, depending on the situation and what you feel is right.

    What is the demand for the property?

    If the market is good and many tenants seek to rent your property, you should increase your rent by 20% for these monthly tenants. A month-to-month basis increases your work as a landlord when it comes to getting quality tenants. In case of a vacancy, you will be forced to look for new tenants, which is tiring work.

    However, if the market for your property is dull, this means you have a tough time filling up the vacancies with new tenants; increasing the rent for monthly tenants may not be such a good idea.

    What are others charges that can be involved?

    This stands out as the fastest way of determining what to charge your monthly tenants. Check the monthly basis charges in the area for properties that are similar to yours. Avoid copying what others are charging but instead, use the discovery as research for you to determine how much to charge. 

    FAQs

    How much a tenant have to give to terminate a month-to-month rental agreement?

    It depends on the state you are in. However, for most states, a tenant must offer the landlord a 30-day notice of their intention to terminate the lease. The tenant can give the notice at any time in the month. If there are specifications of when a notice of termination of the lease should be given, then the tenant should wait and offer the notice during that time.

    Does a landlord return a security deposit to the tenant?

    A landlord is expected to give the security deposit back to the tenant. However, the landlord may use the security deposit to fix any excess wear and tear and breakages when the tenant leaves. Also, the remaining deposit and a list of deductions made should be provided to the tenant within two weeks to two months after the tenant moves out.

    How can a landlord evict a tenant?

    A landlord can evict a tenant by serving them with a notice of termination in writing. Each state has its own requirements when it comes to a landlord evicting a tenant.

    A landlord may evict a tenant for violating the contract or terminate the tenant’s occupancy without reason to end the leasing agreement. Causes for termination may include pay or rent or quit, cure or quit, and unconditional quit. If termination is without cause, a 30 to 60-day notice should be provided.

    If the tenant refuses to move out of the house or fix the issue, you have the right to file an eviction lawsuit.

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