Pros and Cons of Month-to-Month Lease
The standard contract, where leasing is applied to, is 12 months. However, there is a new option available – the month-to-month lease. Some find this cumbersome, while some find it much better than committing to a one-year contract. To help you decide, here are the pros and cons of the said type.
- It offers flexibility.
A monthly lease is perfect for people who are still looking for a place to permanently move into or those who have contractual jobs in a different location far from home. Here you will not be obliged to commit to a full year, so it would be easier to leave just in case you have another job re-assignment somewhere else.
- Breaking a short-term lease is free.
No charge is to be applied if you choose to break your contract since you have not obliged yourself to pay for 12 months in the first place. If you have opted to live in a new neighborhood through renting and is planning to leave in less than 12 months, this type of lease is perfect.
- Can Easily be Converted
If you have been renting for a month-to-month basis, but is getting certain that you can stay for a year, you can freely convert it to long-term contract very easily.
- It is more expensive.
The value of a month-to-month lease when accumulated in one year is bigger than having a full year contract in the first place. Landlords use it as a way to encourage the tenants to choose to have the one-year contract.
- It is unstable.
Since payment is done monthly, your landlord may choose to raise the rent anytime he wants to unlike when you choose to have a one-year contract; the landlord cannot change the monthly payment on his whim or without your approval.
- It is difficult to find.
Most landlords want their tenants to stay for at least a year to avoid complexity. Only a few allows a short-term lease.
Frequently Asked Questions
- Should I sign a lease with my tenant?
For a short-term lease, a verbal agreement will do, but if your tenant insists, you can make a written form of it.
- Should I sign a lease with my landlord?
If verbal agreement is allowed, you need not sign anything. However, if the landlord requires you to sign before permitting you to occupy the property, you must sign it then.
- Can a landlord break a lease?
Yes. The landlord has the right to break a lease any time, provided that there would be a valid reason, such as being irritated by the noise you make every day or because you have damaged some properties in the area you are renting. This goes through a formal process though, such as giving notices and making actions and reformations.
Before committing to a lease, be sure you understand the positive and negative things about it and weigh which you can tolerate. Also, make forecasts about what will happen if you choose to have a long or short-term lease. You can achieve this best by talking to your possible landlord to have the best assistance you need.