Month-to-Month Lease Agreement Template
A month-to-month lease automatically renews each month until either party gives notice. You get flexibility. The tenant gets flexibility. Either can end it with 30 days notice.
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What Your Month-to-Month Lease Must Include
Month-to-month doesn't mean informal. You need the same protections as a fixed-term lease.
- Monthly rent amount — What they pay each month
- Due date and late fees — When rent is due and penalties for late payment
- Security deposit — Amount held and conditions for return
- Termination notice period — Usually 30 days, but specify it
- Rules and policies — Pets, parking, guests, noise
Important: Month-to-month lets you adjust rent with proper notice (usually 30 days). Build this into your agreement so tenants aren't surprised by increases.
5 Mistakes That Create Month-to-Month Problems
No written agreement
"We'll just do month-to-month verbally" means you have no enforceable rules, no late fee policy, and weak eviction grounds.
Wrong notice period
Most states require 30 days. California requires 60 days for tenants over 1 year. Some local laws require more. Check before you commit.
No rent increase provision
If you don't specify how and when you can raise rent, tenants may claim the increase isn't valid. Put it in writing.
Using it when you need stability
Month-to-month means they can leave with 30 days notice. If you need guaranteed income for 12 months, use a fixed-term lease.
Forgetting rent control
In controlled areas, you may need "just cause" to terminate even a month-to-month tenancy. Flexibility isn't always what it seems.
When to Use a Month-to-Month Lease
Good situations for month-to-month:
• After a fixed lease expires — Both want to continue without committing to another year
• Testing a new tenant — See how they are before locking in long-term
• Planning to sell — Need flexibility to show property and vacate for buyer
• Seasonal rentals — Rent during busy season, take it back off-season
• Renovations planned — Need property back soon for major work
Not ideal for:
• Steady income needs — Tenants can leave with short notice
• Low vacancy markets — Lock in good tenants with longer leases
• High turnover costs — Each turnover costs time and money
Many landlords use fixed-term leases for the first year, then convert to month-to-month after that. Best of both worlds.
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All essential terms
Rent, deposit, late fees, notice period, rules — everything you need for a valid agreement.
Clear termination terms
Notice period spelled out clearly. No confusion about how to end the tenancy.
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Frequently Asked Questions
What's the difference between month-to-month and a 1-year lease?
A 1-year lease locks in both parties for 12 months. Month-to-month renews automatically each month and either party can end it with notice (usually 30 days).
Can I raise rent on a month-to-month tenant?
Yes, with proper written notice (usually 30 days). In rent-controlled areas, you're limited to the allowed percentage increase.
How do I terminate a month-to-month lease?
Give written notice with the required days (usually 30, sometimes 60). The tenant does the same to end. Check state law for exact requirements.
Can I convert a fixed-term lease to month-to-month?
Yes. When the lease expires, you can agree to continue month-to-month. Some leases automatically convert. Check your current lease terms.
Is month-to-month riskier for landlords?
Higher vacancy risk because tenants can leave with short notice. But you also get flexibility to end the tenancy, adjust rent, or get the property back.
Do I need a new agreement after the first month?
No. Month-to-month leases automatically renew each month under the same terms until someone gives notice to end.
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