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Is a Month-to-Month Lease Better for Landlords?

Is a Month-to-Month Lease Better for Landlords?
When it comes to leasing property, landlords have various options to consider. One popular choice is a month-to-month lease, which offers flexibility for both the tenant and the landlord. Before deciding whether to lease your property on a month-to-month basis, it’s essential to understand the benefits and drawbacks of a month-to-month lease for a landlord.  

What Is a Month-to-Month Lease?

A month-to-month lease, as the name suggests, is an agreement that allows tenants to rent a property on a month-by-month basis. Unlike a traditional long-term lease, which typically lasts for a year or more, a month-to-month lease automatically renews at the end of each month unless either party provides notice to terminate the agreement.  

Advantages of a Month-to-Month Lease

A month-to-month lease offers several advantages for landlords, such as:  


One of the key advantages of a month-to-month lease is the flexibility it provides. With a long-term lease, landlords are committed to renting their property for a specific duration, which can be inconvenient if they need to make changes or sell the property.  A month-to-month lease allows landlords to regain possession of the property quickly if they decide to sell or need it for personal use.  

Adjust Rental Rates

A month-to-month lease offers landlords the opportunity to adjust rental rates more frequently. In a long-term lease agreement, the agreed-upon rental amount remains fixed for the duration of the contract.  a stack of coins in front of a blurry clock However, with a month-to-month lease, landlords can increase the rent with proper notice, reflecting market changes or increased expenses. This flexibility can be advantageous for landlords in areas with rapidly rising property values or inflation.  

Increased Control 

Moreover, a month-to-month lease provides landlords with increased control over their tenant choice. With a long-term lease, landlords are bound by the terms of the agreement and can only terminate the lease under specific circumstances, such as non-payment of rent or violation of lease terms.  In contrast, a month-to-month lease allows landlords to end the tenancy with proper notice, provided there is no violation of the Fair Housing Act. This flexibility enables landlords to respond to changing circumstances and make adjustments as necessary.  

Wide Range of Tenants

Furthermore, month-to-month leases can attract different types of tenants. Some individuals or families may have temporary housing needs, such as those relocating for a short-term job assignment or individuals waiting to purchase a home.  By offering month-to-month leases, landlords can tap into this market and maintain a steady stream of tenants. This can reduce the risks of long-term vacancies and ensure a consistent rental income.  

Drawbacks of Month-to-Month Leases

It is important to acknowledge that month-to-month leases also have their drawbacks for landlords, such as:  

High Tenant Turnover

One significant disadvantage of month-to-month leases is the higher tenant turnover. With the option to terminate the lease at the end of any month, tenants may be more likely to leave on short notice.  a person standing in the middle of multiple cardboard boxes This can result in more frequent vacancy periods, requiring landlords to invest time and resources in finding new tenants more frequently, as well as taking more measures to keep your investment safe.  

More Challenging Property Management

The shorter-term nature of month-to-month leases can pose challenges for property management. Landlords need to allocate time and resources to ensure a smooth transition between tenants, including thorough cleaning, maintenance, repairs, and marketing of the property.  The administrative burden can be higher with more frequent turnover, especially for landlords managing multiple properties.  

Unstable Income 

Month-to-month leases may not provide landlords with the same level of financial security as long-term leases. The stability of a long-term lease provides landlords with a predictable income stream for a specified period, whereas month-to-month leases can introduce income fluctuations.  Landlords may need to account for potential periods of vacancy and the possibility of rent fluctuations in their financial planning.    

When to Consider a Month-to-Month Lease?

A month-to-month lease can be a suitable option in several scenarios. Here are some situations where landlords may consider offering a month-to-month lease:  

Uncertain Rental Demand

In areas with unpredictable rental demand or fluctuating market conditions, a month-to-month lease can be advantageous. It allows landlords to adjust lease rates or terminate the lease more easily based on the current demand and market trends.  

Short-Term Housing Needs

If the property is located in an area with a transient population, such as a university town or a city with a high number of temporary job assignments, offering month-to-month leases can attract tenants who need short-term housing solutions. someone working at a home desk  

Property Sale or Renovation Plans

Landlords who are considering selling their property or want to perform quality renovations in the near future may prefer month-to-month leases. This flexibility allows them to regain possession of the property more quickly without being tied to a long-term lease agreement.  

Flexibility for Personal Use

Landlords who occasionally need to use their property for personal reasons, such as a vacation home, may find month-to-month leases more suitable. It allows them to use the property during periods when it is not rented out, while still generating rental income during other months.  

Trial Period for Tenants

Some landlords may choose month-to-month leases as a trial period for new tenants. It allows them to assess the tenant's suitability and adherence to lease terms before entering into a long-term agreement.  

Evolving Rental Market

If the local rental market is experiencing rapid changes, such as significant rent increases or shifts in tenant preferences, a month-to-month lease can provide landlords with the flexibility to adapt to those changes more quickly.  

Personal Preferences

Some landlords simply prefer the freedom and flexibility that month-to-month leases offer. It allows them to maintain greater control over their property and tenancy agreements.  


A month-to-month lease offers flexibility, increased control over your property, and the ability to adjust rental rates more frequently. The suitability of a month-to-month lease depends on your individual circumstances, preferences, and the local rental market dynamics.   If you’re unsure which lease term is right for you, it’s best to work with a reliable property management company that can help you assess your unique situation and needs. Give us a call and our experts at Rent Appeal will be happy to serve you!