“Key Points To Understand About A Month To Month Rental Agreement”
Are you looking to learn more about the month to month rental agreement?
There are two types of rental agreement that property managers should consider. One of those is the month to month agreement (the other being a long-term rental agreement).
There are instances that this type of agreement can be beneficial to the property manager.
That’s why I want to take the time to share with you the key points you need to know about a month to month rental agreement.
Information About A Month To Month Rental Agreement
When using a rental agreement you need to be aware of specific information needed to run and manage the rental during the rental period. There are some key points you’ll need to know and understand when it comes to a month to month rental agreement.
The following sections will help you to better understand the rental agreement.
What Is A Month To Month Rental Agreement
A month to month rental agreement is a type of agreement or rental contract that can renew or end the contract to rent the property at the end of each month. Normally the tenant can live in the property as long as he or she wants provided that the said tenant will pay the rent on time. The tenant can also live on the property as long as the landlord or the property manager does not issue a notice of vacancy.
This type of rental agreement allows the tenant to leave the property at the end of the month without breaking the agreement. The tenant can also leave whenever he or she wants, provided that there will be a 30-day notice before he or she leaves.
With this type of rental agreement, the tenant can stay until either the tenant or the property manager decides differently or the contract is renegotiated with unfavorable terms for one of the parties. Since these are shorter term leases and provides flexibility on the part of the tenant. Having a short-term rental allows the property manager to charge market value or more for rents for each month.
Month To Month Rental Agreement Versus A Fixed Rental Agreement
There are two types of rental agreement, the month to month rental agreement and the fixed rental agreement.
This section will help you know the difference between a month to month and fixed agreement.
Month To Month Rental Agreement
In a month to month rental agreement the rental contract is placed for 30 days and can not be altered during the 30-day contract. Additionally, neither of the two parties can alter the agreement or terminate the agreement during this period of time. However, you must remember, even though the contract states 30 day month to month, you are still required by law before the termination of the agreement happens a notice must be first provided 30 days before the termination.
This type of rental agreement will not cause any penalty on the side of the tenant. It also won’t cause a loss of deposit on the side of the property manager. Mainly, this type of rental agreement provides flexibility for both parties.
However, with a month to month rental agreement, landlords or property managers can raise a tenant’s rent each time the agreement is renewed. They can also change the rental terms or evict a tenant provided that there is an advance notice.
Contracts for this type of rental agreement can either be written or oral…
Fixed Rental Agreement
A fixed rental agreement is a type of rental agreement where the tenant agrees to stay and pay the rent for a specific period of time. The length of stay is longer, normally 6 months to 1-year term, compared to a month to month rental agreement. This is why this agreement has a written contract where the length of stay is included.
Tenants who break any clause on the agreement will typically lose their deposit. If it’s applicable, they may also lose their pre-paid rent for the final month of their lease. They will also be held liable for the amount of rent and the time left on their agreement if they decide to break the agreement earlier.
The law typically limits the rent liability that is due for the time it took the landlord a while to find a replacement tenant.
What To Include In A Month To Month Rental Agreement
If you are planning to create a written month to month rental agreement, then here are some information that you should include in your agreement.
– The duration of the lease (ie. one month).
– Whether or not the lease will automatically renew (automatic renewal is common to month-to-month agreements).
– The schedule for the payment of rent and this include due dates.
– The amount of rent the tenant has to pay.
– The name(s) of the tenant(s), landlord, and property managers.
– Information regarding security deposits.
– The penalties for late rent payments.
– Policies when it comes to pets and guests.
– Tenant privileges such as parking.
– A clause on property damage.
A month to month rental agreement may or may not contain any conditions for early termination of the agreement compared to a fixed term rental agreement. All that is needed is a notice given 30 days by either party before the termination of the agreement.
Final Thoughts On Information About A Month To Month Rental Agreement
In this article, we talked about the month to month rental agreement. Month to month rental agreement offers flexibility for both the tenant and the property manager. Although it offers flexibility for both parties, it’s important that either party must provide a 30-day notice of the termination of the lease. This type of agreement can either be written or oral.
But if you are planning to create your own month to month rental agreement, then feel free to check the information I have provided in this blog post.
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