Why Landlords Might Consider a Month-To-Month Lease Instead

A month-to-month lease agreement allows the tenant or the landlord to give 15 days’ notice to vacate the property. Most month-to-month rental agreements are used to extend existing leases, but landlords and tenants can also sign a month-to-month lease from the start.

Here are the benefits and drawbacks of using month-to-month lease agreements.

The Benefits of a Month-to-Month Lease

Long-term leases are typically the norm when it comes to property rentals, but month-to-month leases may benefit landlords through the following:

1. More Chances of Increasing the Rent

Month-to-month leases allow you to charge higher rent and increase it more often than a fixed-term lease. The reasoning behind charging more rent on a short-term lease is that more risk and expense are involved because a tenant can move out quickly anytime.

Of course, the amount of extra rent a landlord can charge a month-to-month tenant and the frequency with which the rent can be increased is determined by market demand for rental property as state regulations. 

2. Flexibility

During the tenant screening process, it is recommended that you thoroughly vet the tenant. You should know if they intend to set down roots in the area or if they’re merely passing through. If the tenant’s stay in the area is unpredictable, a month-to-month lease provides flexibility while also allowing you to accommodate the tenant.

It is recommended for new landlords to use month-to-month rental agreements rather than standard leases. This allows you to work out the kinks of property rental. With such a contract in place, you’ll be able to determine what works and what doesn’t.

3. Allows You to Break the Lease Without Penalties

When providing a month-to-month tenancy, you must generally provide your tenant with a 15 days’ notice to vacate. This varies by state, so you should check your state laws to be sure. 

A month-to-month lease is not only convenient for the tenant but also for the landlord. If you no longer want to continue the lease contract, you can give your tenant a notice to vacate. This is especially useful if you intend to renovate or sell your rental property shortly and need it to be vacant within a month.

The Drawbacks of a Month-to-Month Lease

While month-to-month rental leases are advantageous for a variety of reasons, they also have drawbacks.

1. Difficulty in Long-Term Planning

A flexible end date may be desirable in some circumstances, but as a landlord, this flexibility can lead to uncertainty and lend itself to a short-term tenancy. 

Ideally, you want a good tenant who will stay for a long time so that you can be sure you’ll get paid, your property will be taken care of, and you won’t have to do any extra work to find tenants.

2. Potential Risk of High Vacancy

Vacancies negatively impact a landlord’s ROI because you’ll have to pay for maintenance expenses without any cash flow. A vacant property also attracts more theft and vandalism.

You don’t want to rush into finding a new tenant, but you want to avoid a vacancy as much as possible.

3. Shorter Time to Find New Tenants

The month-to-month lease requires a minimum of 15 days’ notice to be terminated. This is a short period in which to market your rental unit and screen new applicants.

It may also put you at risk of taking on a problematic tenant. This is because you will be more likely to accept any application to avoid the costs of a vacant rental unit.


Managing your property entails more than just collecting rent and keeping your property in good condition. To ensure that their investment is protected, a landlord must be well-versed in leasing and rental laws.

Consider partnering with one of the best property management company in Jacksonville, FL! Quest Property Management helps landlords like you reap the maximum benefits of rental without worrying about the day-to-day operations. Contact us today to learn more about how we can help!