Month-to-Month Lease Agreement

A month-to-month lease is a legally binding residential rental agreement that (usually) has no fixed end date and renews on a monthly basis. This allows a landlord to rent to a tenant flexibly rather than tying them into a long-term contract.

This differs significantly from residential lease agreements which usually last for a fixed duration, during which time the terms cannot be changed. Month-to-month agreements, on the other hand, allow tenants to leave or landlords to make alterations to the contractual terms at shorter notice. 

Due to their flexible nature, month-to-month lease agreements are mainly used for properties that are used for shorter-term residencies. In most cases, you would use a monthly contract such as this for the following types of property:

• Duplex

• Townhouse

• Room

• Mobile Home

• Vacation Home Rental

Whilst the residency isn’t as long term as you would get with a house or apartment, a written contract between landlord and tenant is still necessary to ensure the real estate is used properly and the resident is properly protected. As a rental agreement is more flexible than other types of contract, the terms are easier to manage if things change for either party.

Writing your own lease agreement from scratch can be done using a online legal documents, which is printed off and signed. Using our contract maker you’ll be guided carefully through all the information needed in your state.

To complete your lease agreement properly you’ll broadly need to follow these 3 steps:

1. Identify all the key parties (i.e. the landlord and the tenant).

2. Describe the property

3. Explain the lease terms

Obviously, these steps are a lot more detailed in practice as you’ll need to specify key data and terms of the contract such as penalty fees, dates, policies and security deposits. However, using our online designer helps you address these points as you progress through the process.

Alternatively, you can also ask a lawyer or real estate agency to draw up the contract for you. This, however, comes with costly fees and could prove more time consuming.

Each state sets its own rules on the minimum amount of time needed to terminate a lease. Your contract must stick to this duration or it won’t be enforceable and you could be sued by the tenant.

The specific rules for each state are as follows:

As it is a legal contract, you must make sure all the details in your final month-to-month agreement conform to the laws of your state. You cannot insert conditions that would contravene property legislation in your local area or at a federal level.

Some key terms that would invalidate your lease agreement include the following:

A Non-Refundable Security Deposit 

Security deposits can only be collected as a guarantee against any damages or non-payment of rent. You must return the sum at the end of the tenancy unless you’ve deducted costs.

Charging Penalties Instead of Fees 

Technically speaking you may not legally charge tenants penalties. However, you may charge fees that recoup any losses. Any fees you impose for contraventions such as late payment or damages must be stated clearly up front in the lease agreement. 

Forcing the Tenant to Manage Property Maintenance 

It is the solely the landlord’s responsibility to perform property maintenance or hire contractors for repair work. This cost and responsibility cannot be passed onto the tenant and any contractual terms that explicitly state this requirement can’t be enforced.

Terms That Opt Out of Health Code Requirements

You cannot get the tenant to sign a contract that waives their rights to live in a property that is safe and habitable. Each state sets heath codes that must be met by law before a residential unit can be occupied no matter what is stated in the agreement.

It’s a good idea to familiarize yourself with how a lease agreement template looks and reads before getting started on your own. Use our month-to-month lease sample below to get to grips with what this legal document contains.

When you are managing real estate, there are many legal documents that can be used to keep things running smoothly. Try one of our other property forms below to deal comprehensively with any issues that may arise:

• Eviction Notice

• Rental Application

• Residential Lease Agreement