The rental market has its share of challenges ranging from deceptive landlords to confusing legal language. As a result, locating the suitable rental can be a time-consuming and mentally demanding process.
However, you’ll have to establish whether you’re seeking a long or short-term lease before you start your search. Signing a lease is a huge commitment: it implies you’re legally committed to paying a specific rent amount for a precise timeframe.
Although the terms differ according to state and landlord, a 12-month lease is the most common. However, a year can be a long period. If you have difficulty thinking about where you’ll be in a year, the concept of a month-to-month lease may appear more appealing. Here’s what you need to know about this lease option.
Month-to-month Lease
This type of lease renews automatically every month without you or the property owner signing or saying anything. The agreement can take place orally or in writing. This kind doesn’t specify the lease’s end date, unlike a fixed-term lease.
It’s important to keep in mind that if the landlord decides to increase your rent, you’ll need to re-sign the change before it takes effect.
Benefits of a Month-to-Month Lease
Greater Flexibility
If you’re thinking of purchasing a property soon or shifting to a new city, this type of lease offers more flexibility and can generate savings in the long run. On the other hand, if you sign a longer lease, you have a legal obligation to pay 12 months of rent even if you wish to relocate before the expiry of the lease.
A number of landlords will permit early lease termination if you locate a new renter. However, if you wish to relocate on short notice without incurring a penalty, a month-to-month lease is the best option. Nevertheless, you’ll still have to issue a 30 days’ notice to the landlord depending on the agreement.
No Penalty
With this option, there’s no fine for breaking the lease. Uncertainty is a huge stressor for tenants, irrespective of the kind of lease contract that’s in place. When you’re living under a fixed contract and you have to relocate before the end date, you’re likely to incur a fine to break the agreement early.
There’s a high chance you’ll pay extra months’ rent after relocating while the property owner preps the rental and markets it. You might even end up paying the rest of the rent for the lease’s duration if the landlord doesn’t locate a new renter.
Roommate Arrangement
This lease option can be advantageous if you have roommates. Whether they’re your childhood friends or you found them online, roommates can be difficult to work with when you need to plan the next year.
If one roommate intends to move out before a one-year lease is up, instead of risking an unlawful sublease or assuming the process of releasing that roommate and adjusting your agreement to introduce a newly vetted roommate, you could simply begin a new month-to-month lease with the substitute provided the property owner agrees.
Although it can at times be difficult to locate a rental with the suitable options, renting a unit with a month-to-month lease may be your best option. If you’re still uncertain about this type of lease, these benefits will convince you otherwise.
For more information on a month-to-month lease, contact us at Apartment Agents or leave a comment.