A month-to-month rental agreement (sometimes called a “tenancy at will” in certain states) is a contract (not necessarily in writing) that allows a tenant to rent property from a landlord, for one month at a time, in exchange for a fee (“rent”). The rental renews monthly, until either party gives proper notice to end it.
Month-to-Month Rental Agreements by State
What is a month-to-month lease agreement?
A simple month-to-month lease agreement is a rental agreement between a tenant and a landlord that allows the tenant (also referred to as a tenant-at-will) to rent property from the landlord in exchange for monthly rent payments.
Unlike a standard lease, however, these rental agreements do not have a set end date. They renew each month until either party gives notice to terminate.
The basic terms of a month-to-month lease agreement often mirror those of a standard lease, however. These terms include the rent amount, due date, security deposit information, maintenance responsibilities, and other relevant details.
These rental agreements offer both parties greater flexibility, allowing them to terminate the agreement at any time and adjust the rent as needed.
How This Type of Lease Works
A month-to-month lease agreement works differently from a standard lease. These agreements are short-term contracts that automatically renew each month with each rent payment or until either party gives proper notice to terminate the agreement.
Some fixed-term leases automatically convert to a month-to-month agreement at the end of their term, and the lease agreement outlines this change.
Either party may terminate the rental agreement with notice. The notice required is typically 30 days, but it can vary from state to state, so always check your local and state laws for specific details. Additional terms, such as the rent amount or lease policies, can be changed with notice.
This level of flexibility can often be appealing to both tenants and landlords, who value the ability to adapt with this type of rental agreement quickly. Landlords typically have the freedom to adjust rent according to market conditions or as they see fit, and tenants can easily terminate their rental agreement if their situation changes.
Notice Periods to Terminate
Whether initiated by the landlord or the tenant, each state has different laws and regulations regarding the notice required to terminate a month-to-month lease agreement. Most often, the notice period is 30 days; however, many states have their own unique rules regarding notice periods.
Here are the notice requirements for each state to terminate a rental agreement:
| State | Notice To End Month-to-Month Lease |
| Alabama | 30 days |
| Alaska | 30 days |
| Arizona | 30 days |
| Arkansas | 30 days |
| California | 30 days (under 1 year of residence on the property);
or 60 days (over 1 year of residence on the property) |
| Colorado | 91 days (1 year or more of residence on the property);
28 days (6 months to 1 year of residence on the property); or 21 days (over 1 month of residence on the property, but under 6 months) |
| Connecticut | 3 days |
| Delaware | 60 days |
| Florida | 15 days |
| Georgia | 60 days from landlord; or
30 days from tenant |
| Hawaii | 45 days from landlord; or
28 days from tenant |
| Idaho | 1 month |
| Illinois | 30 days |
| Indiana | 1 month |
| Iowa | 30 days |
| Kansas | 30 days |
| Kentucky | 30 days |
| Louisiana | 10 days |
| Maine | 30 days |
| Maryland | 30 days |
| Massachusetts | 30 days |
| Michigan | 1 month |
| Minnesota | 30 days |
| Mississippi | 30 days |
| Missouri | 30 days |
| Montana | 30 days |
| Nebraska | 30 days |
| Nevada | 30 days |
| New Hampshire | 30 days |
| New Jersey | 1 month |
| New Mexico | 30 days |
| New York | 30 days (if property is outside of New York City)
30 days (if property is inside New York City and tenant has under 1 year of residence on the property) 60 days (if property is inside New York City and tenant has over 1 year of residence on the property but fewer than 2 years total) 90 days (if property is inside New York City and tenant has 2 years or more of residence on the property) |
| North Carolina | 7 days |
| North Dakota | 30 days |
| Ohio | 30 days |
| Oklahoma | 30 days |
| Oregon | 30 days |
| Pennsylvania | 30 days (1 year or more of residence on the property); or
15 days (under 1 year of residence on the property) |
| Rhode Island | 30 days |
| South Carolina | 30 days |
| South Dakota | 30 days from the landlord; or
15 days from the tenant |
| Tennessee | 30 days |
| Texas | 1 month |
| Utah | 15 calendar days |
| Vermont | 60 days (under 2 years of residence on the property); or
90 days (2 years or more of residence on the property) |
| Virginia | 30 days |
| Washington | 20 days |
| Washington D.C. | 30 days |
| West Virginia | 1 month |
| Wisconsin | 28 days |
| Wyoming | No statute |
Difference Between Lease and Month-to-Month
While the terms “lease agreement” and “rental agreement” are often used interchangeably (particularly among those who are not in the industry), there are actually several marked differences between the two.
Here, we will take a closer look at what distinguishes the two to help you decide which makes the most sense for you and your situation.
Lease
A standard fixed-term lease is for a defined duration, with specific start and end dates outlined in the lease. While both the tenant and the landlord have the security of a more extended contract in place, these leases lack the flexibility to change quickly, if needed.
Breaking the lease typically involves some form of penalty or consequence, such as forfeiting a security deposit or being financially responsible for covering the rent for the remainder of the lease term.
A common agreement for long-term housing solutions, a fixed-term lease locks in the rent and other lease terms, which remain fixed for the duration of the lease.
The end of a lease term typically requires a notice to vacate, or landlords may offer tenants the opportunity to renew their lease or convert to a month-to-month arrangement.
Month-to-Month
A month-to-month lease agreement, on the other hand, is for an Indefinite duration. These agreements automatically renew every month, unless either the tenant or the landlord provides notice to terminate the contract.
This required notice is most often 30 days, but can vary from state to state, with some states requiring 60 days’ notice.
These agreements also offer both parties more flexibility. There is no penalty for early termination of the contract (as long as either party provides notice), and it is easier to adjust the rent price as needed, given market fluctuations.
A typical arrangement for temporary housing, transitional periods, or when conditions are uncertain, a month-to-month lease agreement may come with a higher monthly rent when compared to a fixed-term lease.
Pros and Cons of Flexible Lease Terms
It’s easy to say that a month-to-month lease agreement offers more flexible lease terms, but what does that mean? Simply put, it can have different meanings for different people. Below, we’ll outline the pros and cons of a month-to-month lease agreement for both landlords and tenants.
Pros for Landlords
Month-to-month rental agreements offer landlords more flexibility and control over the rental, such as the ability to adjust the rent more frequently as needed and the ability to regain possession of the property more quickly if necessary.
A month-to-month agreement allows for easier tenant removal if things aren’t going well, and it almost acts as a trial period for tenants to ensure that the match is a good fit.
Additionally, a month-to-month rental offers higher rental income potential, as landlords can often demand more rent in exchange for the flexible contract terms.
Month-to-month rentals also tend to attract a specific type of renter, which can be beneficial in areas with high demand, such as college towns or tourist destinations.
Cons for Landlords
Of course, there are potential cons for landlords to consider, as well. Along with increased flexibility comes more uncertainty and less stable income from often higher turnover.
With this higher turnover comes increased admin work and potential challenges in building long-term relationships with your tenants. There is also the potential risk for increased wear and tear on your property.
Pros for Tenants
There are also benefits to a month-to-month lease agreement for tenants. While flexibility is the biggest draw, there are others to consider. This type of rental can provide temporary housing when necessary and offers financial responsiveness.
If the tenant’s conditions change and a more affordable rental becomes available, it is easy to terminate the agreement without penalty.
Cons for Tenants
Lastly, there are potential drawbacks for tenants to consider. Increased flexibility comes at the cost of stability, as a month-to-month lease agreement can mean higher rent, the potential for more frequent rent increases, less negotiating power, and having to move more frequently.
Clauses to Include in Month-to-Month Agreements
Your month-to-month lease agreement template must include several key clauses and sections:
- Rent amount, due date, and accepted payment methods
- Late fees, including any related grace period, and the amount of the fee
- Security deposit terms and return policy
- Maintenance and repair responsibilities for both parties
- Utility payment breakdown that explains how tenants will split charges for any shared utilities
- Guest and subletting rules, if applicable
- Pets policy, including any pet fees and/or pet rent
- Notice period for ending the lease or making changes
Each state sets its own unique rules for what the lease agreement must include. To ensure you have all your bases covered, always use a state-specific builder to help create your month-to-month lease agreement.
Legal Requirements to Know
Although laws and regulations can vary significantly by state, there are several common legal elements that you should be aware of when creating your month-to-month lease agreement. These help to ensure that your lease remains compliant, while also protecting you and your investment.
Some of the more common legal elements of a rental agreement include:
- Landlords must share required property disclosures (lead paint, mold, landlord contact info, etc) before signing a lease. These required disclosures vary greatly, so always check your local and state laws.
- Rent increases timelines and local restrictions, including any rent control or stabilization laws (where existing).
- Eviction protections and how to legally evict a tenant with just cause.
- Required grace period for late rent (where applicable) and late fees.
- Security deposit rules, including how and where to hold the funds, tracking deductions, and returning the deposit.
- Property access regulations explain when landlords are permitted to enter the unit and what advance notice they must give.
- Agreement violations and when landlords may issue Notices to Quit/Cure. Keep in mind that landlords cannot self-evict tenants and should always go through the proper legal channels.
- Lease abandonment and how to proceed, including what the tenant is still financially responsible for.
Final Words on Month-to-Month Lease Agreements
A month-to-month lease agreement can be a highly beneficial tool for both landlords and tenants. If your timeline is uncertain or if you have short-term needs, a month-to-month agreement is the perfect solution.
However, not all month-to-month lease agreement templates are the same. Using a free sample month-to-month lease agreement template helps ensure that your lease is compliant and tailored to your state’s specific requirements.
Always review terms carefully before signing an agreement. Download our free template PDF or use our state-specific builder to get started today.
