Is a Month-To-Month Lease Better for Landlords?

While it might not be as common as the traditional lease, a month-to-month lease can be advantageous to you as a rental property owner. But before you make the transition, you will need to inform yourself on the pros and cons of a month-to-month lease.

In this article, our experienced and reliable team breaks down what it means to have a month-to-month lease to help you decide if it is the right choice for your rental property.

Defining a Month-To-Month Lease

This type of lease is a legally-binding contract like any other. However, this type of lease agreement applies for only a month and contains the legal obligations and responsibilities that bind both the landlord and tenant.

The lease agreement is binding every month as long as both parties meet their obligations, financially and as per the property obligations. To cancel the lease agreement, either party has to provide a notice 30 days prior.

Advantages of a Month-To-Month Lease

If your rental property is located in an area with a steady stream of visitors staying for short periods, a month-to-month lease could be the ideal setup for you. Below are some of the advantages that you stand to gain from a month-to-month lease.


If you wanted to move away from your traditional job and try your hand at being a landlord, a month-to-month lease might be perfect for you.
a room with plain furniture and a partition
Since you do not have to make a long term commitment to any tenants, you can use this type of rental agreement to transition into full time property management.


One of the disadvantages of a long-term tenancy for a landlord is the length of the tenancy. You might have signed a year-long lease that binds both landlord and tenant to the property. Provided that they pay their rental dues and adhere to the terms of the lease agreement, you have no legal reason to ask them to leave the property without mutual agreement.

On the other hand, a month-to-month tenancy is short term and provides you with flexibility. If you want your tenant to move out, all you need to do is serve them with a 30-day notice. They must vacate the property on the date provided on the notice.

Rental Price Reviews

The terms of a monthly lease agreement are binding for one month. Should you feel that developments in the neighborhood have had a significant impact on the demand for property, you can easily and legally raise the rent in the next month’s lease.

Disadvantages of a Month-To-Month Lease

Although there are many advantages to a shorter lease, it may not be the perfect choice for you.


Rental property is an investment option that offers investors stability in rental income. Having a month-to-month lease can be less stable than a traditional lease since the term is so short.
a person packing a suitcase on their bed
A tenant can choose to end the tenancy should they give you proper notice, leaving you without a steady income.

Short Notice

If a tenant decides to move out of your rental, you will have only 30 days to secure a new one. It might be hard to market the property and secure a tenant within such a short period of time. You must also be mindful of the tenant screening process.

In this type of situation, a reputable and reliable property manager can help you quickly fill vacancies with quality tenants.

Month-to-Month Lease vs. Lease Renewal

When considering a month-to-month lease, it is important to know about lease renewals as well. A lease renewal can apply to a longer rental period, but it is still worth knowing about if you are interested in renting monthly.

A lease renewal applies to those tenants who already have a signed lease that binds them to the property for between 6 to 12 months. However, a monthly lease still needs to be renewed, just on a shorter term.

There will be some tenants who might want to think over the terms of your new renewal offer. Should the old lease expire before they sign the new one, you should consider using a month-to-month lease for the time being.
a person on a couch reading documents
Never lease a property to a tenant without a lease agreement in place. This can cause disputes and legal issues along the line.

Compliance with the Law

Depending on the location of your property, you might need to follow different laws. When creating your month-to-month lease agreement, you should be aware of county ordinances and State-specific laws that bind you as a landlord.

Failure to comply with these specific laws could force you to pay hefty fines or present yourself before a court of law. If you are unsure of the applicable laws, get in touch with a professional property management company to advise you.


Having a month-to-month lease comes with its own set of advantages. It offers flexibility, no penalties, and allows you to understand if becoming a landlord is the right choice for you. Month-to-month leasing is a great choice for many landlords and can offer a great alternative to long-term leasing.

Do you need more information on the details of a short-term, month-to-month lease? Or perhaps help on managing your rental property? The team from get MULTIfamily Property Management has all the information for your property management needs.

Get in touch with us today!