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Month-to-Month Tenancy: Pros and Cons of Short-Term Renting

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   A month-to-month tenancy is when a tenant rents from a landlord for one month at a time.
   
   What Is a Month-to-Month Tenancy?
   
   A month-to-month tenancy is when the renter is granted possession of the property with no definite expiration date and pays the owner on a monthly basis. This tenancy is most commonly found in residential leases. In situations where there is no written agreement, tenancy is considered to be on a month-to-month basis.
   
   Key Takeaways
   
   - A month-to-month tenancy is when the tenant rents from the owner on a monthly basis.
   - This type of tenancy offers more flexibility but less security than a year-long lease.
   - Other variations of tenancies found in lease contracts include tenancy for years, tenancy at will, and tenancy at sufferance.
   How a Month-to-Month Tenancy Works
   
   Tenancy falls under the real estate laws that cover leases. In legal real estate terminology, a lease is a contract between the owner of a property, also known as the landlord, and a tenant, who rents the property. The lease transfers the owner’s rights to the exclusive possession and use of the property to the tenant for an agreed-upon period.
   
   As anyone who has rented an apartment knows, the lease sets forth the period of time for which the contract is to run and the amount of rent the tenant is contracted to pay. The renter gains access to the property and uses it in whatever manner was agreed upon in the lease. The landlord receives rent for a specified period of time, and after the lease period is up their ownership rights are returned.
   
   Control over the end date of the tenancy
   
   Financial fluidity
   
   Peace of mind
   
   Moving out or replacing a tenant on short notice
   
   Less predictable income
   
   Uncertainty
   
   Pros and Cons of a Month-to-Month Tenancy
   
   Whether a month-to-month tenancy is advantageous or disadvantageous depends, in part, on a renter's or landlord's desire for flexibility and ability to respond quickly to changing circumstances.
   
   Pros Explained
   
   Control over the end date. Renters are not tied down to a long-term lease and can choose to leave with a maximum of 30 days' notice. Landlords can choose to end the arrangement with the same time frame, giving them greater control of their property.
   Financial fluidity. Landlords can change the rental amount every month if they wish. Renters can take advantage of a better offer elsewhere in quick fashion.
   Peace of mind. Renters are not stuck having to break a lease or find a sublessee in the event they want to move, either of which could happen if they leave before a long-term lease expires. Landlords can get rid of bad tenants much more easily than with a long-term lease.
   
   Cons Explained
   
   Moving out or replacing a tenant on short notice. Landlords can be stuck with an empty property on short notice. Renters can be forced to find new lodgings on the same short notice.
   Higher rents/less predictable income. Renters generally pay higher rents than with long-term leases, because of the possibility of sudden vacancies that can’t be immediately filled. Landlords can suffer from less predictable income than they would be afforded by a long-term lease.
   Uncertainty. Renters cannot be sure of their tenancy beyond the span of one month and so must have a quick move plan always in place. Landlords cannot be sure of a steady supply of tenants willing to live with the instability of a month-to-month tenancy.
   
   Important
   
   Month-to-month tenancy falls under the real estate laws that cover leases.
   
   Types of Tenancy
   
   Within the lease contract, the tenant’s legal right to possess the property is deemed the leasehold estate-or tenancy. Depending upon the contract’s language, the following four different tenancies can be established.
   
   Tenancy for Term
   
   This establishes a possession for the tenant that will last for a fixed time period, which could range from days to years. It has a specific starting and ending date, with the latter signifying the expiration of the renter’s tenancy.
   
   Periodic Tenancy
   
   This is established when the renter’s possession is contracted for an indefinite period, with no agreed-upon expiration date. The tenancy is originally created for a specific period, but the renter’s tenancy can continue until there is some notification of the lease’s termination. Under the terms of the lease, the contract is automatically renewable until the owner or renter gives notice to terminate.
   
   Tenancy at Will
   
   A tenancy at will gives the renter the right to use the property for an unspecified period. The tenancy continues until the owner or renter gives notice of termination. In the event of either party’s death, the tenancy is terminated.
   
   Tenancy at Sufferance
   
   A tenancy at sufferance occurs when the renter, who at one time had established a contractual tenancy, continues to remain in the property without the owner’s consent. This can occur when the renter does not surrender the property after the initial expiration date written into the lease. It usually leads to eviction proceedings being instituted by the owner. If, however, the landlord accepts a rent payment after the lease expiration date, the property is considered to be leased again, but now on a month-to-month basis.
   
   Are Month-to-Month Leases Good?
   
   As a tenant, you might prefer a month-to-month lease if you value flexibility above all else. With a month-to-month arrangement, you're not as restricted: you can leave the property sooner than you might be able to with a year-long lease. As a landlord, you might enjoy a month-to-month lease because it allows you to adjust the rent more often.
   
   What Are the Negatives of a Month-to-Month Lease for Landlords?
   
   A month-to-month lease may not be ideal for landlords because it means less income stability.
   
   Are Month-to-Month Leases Hard to Find?
   
   Month-to-month leases are less common than year-long leases, so if you're a tenant who's looking for a short-term rental, give yourself extra time in your search.
   
   The Bottom Line
   
   A month-to-month tenancy differs from a year-long lease in that there is no specified end date. With a month-to-month arrangement, the tenant pays the landlord every month, and continues to live in the property for the next month. The lease can be extended or terminated every month. There are advantages and disadvantages to this type of set-up for both parties.
   
   Cornell University, Legal Information Institute. "Lease."
   
   Cornell University, Legal Information Institute. "Tenancy for Years."
   
   Cornell University, Legal Information Institute. "Periodic Tenancy."
   
   Cornell University, Legal Information Institute. "Tenancy at Will."
   
   Cornell University, Legal Information Institute. "Tenancy at Sufferance."
   
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