Legal Definitions - month-to-month lease

A month-to-month lease is a rental agreement for a property that automatically renews at the end of each monthly period. Unlike a fixed-term lease (such as a one-year agreement), this type of lease does not have a predetermined end date. It continues indefinitely until either the landlord or the tenant provides proper notice to terminate the tenancy, typically 30 days, as required by state or local law. This arrangement offers significant flexibility for both parties, allowing them to end the agreement with relatively short notice.

• Example 1: Temporary Relocation for Work

  A software engineer accepts a six-month project assignment in a different state. Rather than committing to a year-long apartment lease, they opt for a month-to-month agreement. This allows them to rent housing for the duration of their project and then move out by simply giving the landlord the required 30-day notice, without incurring penalties for breaking a longer lease.

• Example 2: Homeowners Between Properties

  A couple sells their house but their new home won't be ready for occupancy for an uncertain period, potentially a few months. They decide to rent a small apartment on a month-to-month basis. This provides them with a place to live without being tied down, enabling them to move into their new home as soon as it's available by giving their current landlord appropriate notice.

• Example 3: Landlord Considering Future Plans

  A property owner has a vacant rental unit but is contemplating selling the building or undertaking major renovations within the next year. To maintain flexibility and avoid the complexities of breaking a long-term lease, the owner offers the unit on a month-to-month basis. This allows them to generate rental income in the interim while retaining the option to terminate the tenancy with proper notice when they are ready to proceed with their sale or renovation plans.