Although some people prefer the fixed-term lease, others may prefer month-to-month lease. With different lease types, landlords are basically given the flexibility and freedom to manage their property as they like it.
Some landlords may focus on the fixed-term lease, while the others may choose the month to month type. Some may combine both, especially if they have more than one property to manage.
Basically, there is no right or wrong when it comes to choose the type of lease that they like, as long as they understand the concept and they believe it fits their preference.
About Month-to-Month Lease
In fixed-term lease, the tenants can stay within a property within an indicated time period or length (and pay rent over that period) as written in the contract. For instance, this lease agreement will clearly state that a tenant stays in the property from March 2021 to March 2022.
In month-to-month lease, on the other hand, both tenant and landlord agree that they can establish an occupancy without any specific end date. The lease would renew automatically every month until either the tenant or the landlord provides proper notice to bring the contract to an end.
Both of the tenant and landlord also have the right to ‘terminate’ the lease. They can do it without penalty, provided that they provide the notice. The notice can go as far as 30 days, 60 days, or even 90 days (in advance), depending on the lease term and the state.
Most people think that month to month lease is referring to short term lease. In reality, though, it doesn’t have to be short term, really. In some cases, this lease can last for years, even decades, because the landlord and the tenant has developed mutual understanding and good relationship. But then again, this type of lease may not be for everyone.
Although tenants have the ‘power’ to terminate the tenancy, landlords can also have the same power to force the tenants to leave the property. This is one of the reasons why everyone should understand this lease type and decide whether it’s the suitable one for them or not.
Reasons for Month to Month Lease
The fixed-term lease may offer reliability, but month-to-month lease provides flexibility. This is perfect for those who don’t want to stay too long in one place.
It’s also great for those who need to move a lot quite often – getting new job, moving to another city immediately, and such thing alike. Basically, it’s the ideal option for those who move quite a lot. They’re the ones who have the motto, ‘Go where the wind blows’, and these kind of people will like this option.
Moreover, this scheme is ideal for those who want to explore around. These people usually want to find the perfect place or they want to try different neighborhood.
Having the month to month rent is ideal for them because they don’t have to be bound to a place for too long. In the event they find the dream place for themselves, it would be easy for them to easily switch to the new place.
In some cases, it’s also possible that tenants having long term lease want to have a transition to the month to month basis.
Many landlords are available to this option; they are open to such a scheme – provided that you have been a good tenant and you form a positive relationship with your landlord. This kind of lease transition enables you to stay within your current spot and yet you don’t have to make another long term commitment.
The Final Take
Whether you have the fixed-term contract or the month to month type, you need to always read it thoroughly and completely. Your agreement will include all the needed information about the tenancy and the lease management.
Don’t skip out the parts about the rent, the regulations, lease renewals, and such thing alike. Let’s not forget that the written agreement is made so that both landlords and tenants can run their lives in peace; knowing their rights and responsibilities.
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In the end, you need to make a solid decision whether you want the long term or the short term one. If you are a tenant, be sure to pick the trusted landlord. If you are a landlord, perform a tenant screening so you don’t have problems with them. Only by doing so, your month-to-month lease can run well without obstruction or drama.