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The conditions of the lease, such as the monthly amount and security deposit, are outlined in a month-to-month rental agreement.
It should also include the obligations of both the landlord and the renter. While the particular contents of month-to-month rental agreements vary by state, you may use one of three basic rental agreement forms depending on the kind of property you have, such as single-family, multifamily, or vacation home.
Templates for Month-to-Month Rental Agreements
Each of these free rental agreement templates has information that should be included in your month-to-month lease, such as the monthly amount and who is responsible for utility payments. You may choose from three different templates to best depict your rental property.
- Template for a month-to-month rental agreement for a single-family home: Use this for a single-family home.
- Month-to-month rental agreement template for condos, apartments, and multifamily housing: Use this for a rental in a building with two or more units.
- Template for a month-to-month rental agreement for a vacation rental property: This is useful for holiday houses; most property owners don’t use a lease for Airbnb rentals, but it may be useful for other vacation rentals and contains terms about furniture.
Remember to use these rental agreement forms in line with the laws and disclosures in your state.
Consider taking an online course from Lorman to learn more about the complexities of the landlord-tenant relationship, including each party’s legal rights and duties. This continuing education source will teach you the details of the Uniform Residential Landlord-Tenant Act, which serves as a framework for landlord-tenant legislation in most states, in only 94 minutes.
State Landlord-Tenant Laws Examples
As previously stated, landlord-tenant laws differ per state. If you have any issues concerning state-specific landlord-tenant legislation, check your state laws and speak with a local attorney. These regulations cover a variety of topics, including evictions and security deposits.
Let’s have a look at some landlord-tenant legislation in various states:
- California: A landlord may demand a security deposit of up to two months’ rent for an unfurnished property and three months’ rent for a furnished unit; a security deposit must be returned to the tenant within 21 days of their move-out date.
- New York: There is no maximum security deposit amount, and the money must be repaid within a “reasonable length of time,” with no particular time limit.
“The security deposit for a month-to-month rental agreement or an annual lease agreement in Illinois must be held in a federally insured, interest-bearing bank account in the state.” They are not permitted to mix the deposit with any other cash.”
Ericka Rios, Downtown Apartment Company’s Principal and Director of Leasing
State-by-State Landlord-Tenant Laws
You may learn about evictions, security deposits, and other landlord-tenant regulations and disclosures after you’ve arrived. This is beneficial in ensuring that your lease is in compliance.
Avail relieves you of the stress of researching state-specific legislation and disclosures. It’s property management software for landlords and property managers, with features like lawyer-reviewed agreements with state-specific disclosures for do-it-yourself landlords. The first unit is always free, while subsequent units cost $24.99 a month.
When is it Appropriate to Use a Rental Agreement Template?
Landlords often utilize a rental agreement template to save time by not having to create their own month-to-month leasing agreement from start. You should base your leasing agreement on our free rental agreement while taking into account your state’s particular landlord-tenant legislation.
“As a landlord, the terms of the lease are generally the same. If you have several renters, using a rental agreement template saves you time and money on legal costs to design your lease.”
Ray Foster, 2nd Chance Investment Group’s owner
In most cases, a rental agreement template should be used when:
- You don’t know what to include in your month-to-month rental agreement and need a free template to help you out.
- You should check your property manager’s rental agreement form to a template to determine whether the month-to-month lease they’re using has all of the necessary information.
- You own many properties and want to apply the same conditions to all of them, and the rental agreement template may help you do so.
Who Should Use a Month-to-Month Rental Agreement?
Short-term rental and vacation rental property owners that want their space occupied for more than a few days or weeks may consider a month-to-month rental arrangement. It’s also ideal for off-peak, difficult-to-rent seasons of the year, such as the Northeast’s winter, since it provides tenants with flexibility.
Typically, a month-to-month leasing arrangement is appropriate for:
- A landlord who is planning to sell a property but needs rental revenue before doing so.
- A property that does not rent well during off-peak seasons, such as the summers in South Florida or the holidays in the Northeast.
- An investor in real estate who owns property in a high-relocation-rate neighborhood.
- An investor who leases to college students who aren’t planning on staying in the neighborhood for a year.
- If you’re renting your own home while you’re abroad for a spell,
- A yearly lease with a monthly renewal clause comes to an end.
“In Texas, a year lease automatically renews to a month-to-month lease when the year is over. If the landlord wishes to renew the lease for another year, he or she must offer the tenant with a lease extension that includes additional provisions, such as an increase in the monthly rate.”
Nancy Wallace-Laabs, KBN Homes’ Real Estate Broker
Who Isn’t a Good Fit for a Month-to-Month Lease?
Let’s take a look at why a month-to-month lease isn’t the best option for you:
- If your lender forbids month-to-month leasing and instead insists on yearly leases,
- If the building where your apartment is situated does not accept month-to-month rentals, check with your HOA to determine what the minimum lease duration is.
- Because commercial real estate frequently needs more costly build-outs and takes longer to rent than residential property, monthly leases are often employed in strip malls and other comparable properties unless the lender won’t allow it.
- Because short-term leases may have a detrimental impact on a property’s return on investment, they should be avoided in buildings with high vacancy rates.
“Every time a tenant vacates, the landlord is required to spend money repairing and/or cleaning the property. Month-to-month leases, in my experience, attract tenants who do not intend to remain in your home for an extended period of time. To prevent significant turnover, I prefer leases of at least one year, ideally longer.”
Cornelius Charles, Dream Home Property Solutions, LLC co-owner
Keep in mind that with month-to-month leases, landlords often have more ‘power’ than with yearly leases since they may stop the lease at any time for any reason. When a lease is for a year, the landlord must wait until the lease expires to cancel it, or the tenant must violate one of the contract’s provisions to have it lawfully terminated early.
However, as a real estate expert points out below, don’t utilize a month-to-month lease for the wrong reasons, such as making a tenant’s lease term unpleasant.
“Landlords who have a month-to-month lease frequently believe that since the leasehold is so short, they can make the lessor’s life a living nightmare. They may cross the line into constructive eviction, which happens when the guarantee of habitability is thwarted by deterioration or intervening causes to the point that the space’s core purpose of the use is no longer accessible. Allowing noisy neighbors and cutting off the water, for example. This is against the law, and you might face serious consequences.”
Brad Biren, Johnston Martineau Attorney
What Should a Month-to-Month Rental Agreement Contain?
A month-to-month lease agreement differs by state, but it should have specific elements that spell out the landlord’s and tenant’s duties from the start. For instance, the renter may be liable for all utility payments while the landlord is in charge of maintenance and repairs. Providing this information will help you avoid difficulties and evictions later on.
The 15 most critical elements of a month-to-month leasing agreement are listed below.
1. The Rental Agreement’s Duration
A month-to-month agreement specifies the length of the lease, which is one month. The time, day, month, and year the lease will begin and finish, as well as the opportunity to renew it, should all be included. The most popular sort of month-to-month rental agreement automatically renews every month unless either the landlord or the tenant terminates it.
To discontinue a monthly lease, the tenant or landlord must usually offer at least 30 days’ written notice. Some states, such as North Carolina, merely need seven days’ notice, but Delaware requires 60 days. Use the landlord-tenant state law map to find out how much notice your state needs.
2. A month-to-month rental agreement requires a security deposit.
The amount of the security deposit payable prior to moving in is specified in this part of the rental agreement form. A renter gives a security deposit to the landlord, which the landlord may take if the tenant damages the property beyond regular wear and use. It may also be employed by the landlord if the tenant has not paid the rent at the conclusion of the lease period.
The amount of the security deposit, what account it’s housed in, and when it has to be returned should all be included in the security deposit portion of a month-to-month leasing agreement. Security deposits typically vary from one month’s rent to three months’ rent and must be refunded within 15 to 60 days of the tenant’s move-out date.
3. Rental Agreement on a Month-to-Month Basis Total Money Move Required
The move-in money is the money necessary for the renter to move into the property, which is normally a security deposit, first month’s rent, and sometimes last month’s rent. The whole cost of moving in should be included in the lease, as well as how much the renter has already paid and how much is still owed.
When a tenant’s application and proof of income are approved, they often leave a security deposit, with the balance of the move-in money required before the move-in date.
Allowing a renter to move in without paying the total amount of their move-in money is a bad idea. This will save you time, money, and maybe an eviction.
Keep in mind that some apartment complexes and condos charge a few hundred dollars in administrative fees each time a tenant moves in, which should be included in the renter’s move-in budget.
4. Monthly Rent Amount in a Month-to-Month Lease
One of the most significant aspects of a month-to-month rental agreement is the monthly rent amount. It specifies how much rent is owed and when it is due. Rent is usually paid monthly and is due on the first of the month. There will usually be a grace period before the rent is due. A late charge will be levied if the rent is not paid within three days of the due date. The late charge is discussed further in the late fee section.
This section should also provide instructions on how to pay the rent. For instance, online or by mail, as well as the payment methods allowed. Credit cards, money orders, personal checks, and money-receiving apps like PayPal are all acceptable methods of payment.
5. Late Fees & Returned Payment Fees for Month-to-Month Rental Agreements
Late fees are mentioned in the month-to-month lease agreement and may be imposed on the tenant if the rent is not paid within the grace period of the due date. Three to five days over the due date is a common grace period. The number of late fees varies by state, however, they are normally 10% of the monthly rent.
Fees imposed to the renter for a form of payment that was returned by a banking institution for whatever reason are known as returned payment fees. If a renter writes a check and it bounces, the tenant will be assessed a returned payment fee. The cost of a returned payment varies, but it is usually between $50 and $75. Remember to verify your state’s landlord-tenant regulations to determine if there are any limits on late or returned payments.
Check out Avail if you need assistance drafting a contract that incorporates your state’s landlord-tenant rules and disclosures. They’re a property management program that provides leases that have been examined by a lawyer and include state-specific information. The first unit is always free, while subsequent units cost $24.99 a month.
6. Maximum Number of Occupants Permitted in a Month-to-Month Lease
The maximum number of persons who may dwell in a month-to-month rental home legally varies by state, although two people per bedroom are usually the limit. Each resident should be included on the lease along with their age if they are under the age of 18, and if they are beyond the age of 18, they should be vetted.
7. A Month-to-Month Rental Agreement Requires Insurance
Because rental property insurance often does not cover a tenant’s personal items, it is strongly advised that a tenant get renters’ insurance before moving into the property. Some buildings additionally demand that each tenant have a particular level of insurance coverage and that the management business be included as an extra insured person on the policy.
8. Upkeep in a Month-to-Month Lease
This portion of the rental agreement form will specify whether the renter, landlord, or both are liable for property upkeep. Anything costing more than $100 in repairs or upkeep is usually the responsibility of the landlord. This is to keep the renter from contacting the landlord about minor concerns such as light bulbs, smoke detector batteries, and air conditioning filters.
Remember to tell the renter who to contact if they need maintenance or repairs. For maintenance needs, the tenant should usually contact the property management, landlord, or contractor directly.
Utilities for a Month-to-Month Rental
This section details all of the utilities connected with the apartment or property, as well as whether they are included in the rent. It also specifies who is accountable for the payment of each utility. The landlord, for example, maybe responsible for water, sewage, and garbage collection, while the renters are liable for their own power, gas, and cable.
This section should also cover the following items in addition to utilities:
- Lawn care includeing determining who is in charge of mowing the lawn, watering the flowers, and so on.
- Snow removal: If someone stumbles on the landlord’s property, the landlord may be held accountable, thus it’s critical to spell out who is responsible for snow removal.
- Pool cleaning: This identifies who is in charge of cleaning the pool, what chemicals are used, and how frequently the pool is cleaned. A filthy pool may harbor germs and be harmful to swim in.
- The renter is responsible for maintaining the heat above a particular temperature to prevent the pipes from freezing in most places that have cold weather throughout the winter.
- Heater maintenance: In most cases, the landlord is responsible for ensuring that the heater is in working order.
Landlord and Tenant Responsibilities in a Month-to-Month Rental Agreement
This section discusses the landlord’s and tenant’s obligations and expectations. A landlord is usually expected to have functional smoke detectors in the property, as well as to ensure that the property is free of any building code violations. Any repairs should be reported to the landlord as soon as possible. The renter must also utilize the property lawfully and responsibly, as well as maintain it clean.
The following are some of the most important landlord responsibilities:
- All shared spaces should be kept clean.
- Even if the renter hasn’t paid rent, keep all systems in working order, including heating, plumbing, and air conditioning.
- Provide a livable rental unit that complies with all state and municipal building and health requirements.
The following are some of the most important tenant responsibilities:
- While on the property, follow all rules, such as not bringing any illicit narcotics or explosives.
- Maintain the rental unit in a safe and hygienic manner.
- Allow the landlord to access the property with or without notice in the event of an emergency.
- Renter-induced damage is defined as intentional damage to the unit that is not caused by the tenant.
11. Renting a Room on a Month-to-Month Basis
Subletting a property under a month-to-month lease is usually not permitted since the tenancy is short and may be terminated at any time. If the landlord does allow subletting, he or she must screen each subletter as if they were new tenants to ensure that he or she is aware of who is residing in his or her home.
You may need assistance screening renters if you agree to let your tenant sublease your property. RentPrep can assist you with this. It provides tenant screening services, such as background checks and credit checks. The cost of a tenant screening report starts at $18.95.
12. The Peace and Quiet of a Monthly Rental
The term “quiet delight” may be defined in a variety of ways. In the case of month-to-month rental agreements, however, it implies that the renter is entitled to peaceful enjoyment of the property without disturbing the neighbors of other tenants. It also indicates that the renter is not allowed to break any of the building’s regulations or laws.
Other municipalities and buildings have noise limits at certain hours, such as quiet hours between 10 p.m. and 6 a.m., and some neighborhoods have similar restrictions. As a result, make sure both you and your renters understand what is expected of them so that everyone may enjoy their home in peace.
13. Rental Agreement Termination on a Month-to-Month Basis
A month-to-month leasing agreement should also include information on how to end the lease. This section should explain how your state’s legal eviction procedure works and how much notice the landlord must provide the tenant before eviction proceedings can commence. Before you may start eviction proceedings, you usually need at least 15 days’ notice.
14. State Laws, Rules, and Addendums for Month-to-Month Rental Agreements
Any state landlord-tenant legislation, disclosures, building restrictions, and any addendums should be included in this section. This is where, for example, you’d discover the HOA’s construction restrictions, a pet addendum, and, if appropriate, a lead-based paint notice. This part may be tailored to your property’s needs and can contain anything that isn’t covered elsewhere in the lease.
Signatures on Monthly Rental Agreements
The signature portion of a month-to-month rental agreement form is generally the last piece. The lease isn’t legally binding until both the landlord and the renter sign it. Each signature should be accompanied by the date it was signed. We suggest having an attorney study the lease details before signing, as with any signed legal transaction.
Frequently Asked Questions (FAQs)
We’ll address some common questions about a basic rental agreement, especially a month-to-month leasing agreement, in the sections below.
Some commonly asked questions concerning month-to-month rental agreements are included below.
On a month-to-month lease, do you have to provide 30 days’ notice?
If your state has a landlord-tenant statute that governs the amount of notice necessary, it will determine how much notice you must offer to cancel a month-to-month contract. Your contract should also specify how much notice is necessary to discontinue a month-to-month rental.
Is it possible for a landlord to end a month-to-month lease without cause?
A landlord may usually cancel a month-to-month lease without reason if sufficient notice is provided. The correct notice period should be specified in the month-to-month lease and is normally 30 days, but it varies by state, so familiarize yourself with the landlord-tenant rules in your area.
How Do I Evict a Tenant on a Month-to-Month Lease?
To evict a month-to-month renter, you’ll usually have to go through local court processes, or they’ll have to take payment for keys, which is an alternative to eviction.
Final Thoughts
A month-to-month rental agreement form outlines the rights and obligations of both the landlord and the renter, such as who pays the utilities and maintains the landscaping. Based on the kind of property, there are normally three types of month-to-month rental agreement forms, however, the particular contents of the month-to-month lease vary by state.
