Month-to-Month Lease Agreements: What Landlords Need to Know

A month-to-month lease is a rental contract that automatically renews each month until either the landlord or the tenant ends it. In this arrangement, the tenant pays rent monthly with no fixed end date. 

While this lease type comes with greater flexibility for both parties, it offers less security for landlords than a year-long lease. Usually, a month-to-month rental agreement is used when a long-term stay of a tenant is uncertain or when market conditions change rapidly. 

Is a month-to-month agreement for you? This article explains how month-to-month leases work, their pros and cons, key legal rules, and best practices. 

Related article: Free Printable Rental/Lease Agreement: Your Complete Guide

What Is a Month-to-Month Lease?

A month-to-month lease is a periodic tenancy where the tenant rents for one month at a time with no set expiration date. The tenant pays rent monthly, and the lease automatically renews each month until one party ends it. This differs from a fixed-term lease (like 6 or 12 months) because there’s no specified end date. 

With a month-to-month lease, both landlord and tenant enjoy flexibility: the landlord can change terms or end tenancy with notice each month. Likewise, the tenant can give notice and move out. 

Most states allow giving notice on any day of the month, with tenancy ending at the end of the following rental period. (However, some leases or local laws may require notice given on the rent due date to end tenancy at months end.) 

Related: When And How To Supply A Notice To Quit To Your Tenant

When Should Landlords Use Month-to-Month Leases?

Landlords often weigh stability against flexibility. Month-to-month leases make most sense when you need flexibility in how or when you rent. 

Here are common situations where a month-to-month term can be useful:

• Selling or Renovating the Property: If you plan to sell, renovate, or move back into the home soon, a month-to-month tenancy lets you regain possession quickly. 
• Tenant Transitions or Trial Periods: When a fixed-term lease ends but the tenant isn’t ready to move (or you aren’t prepared to re-lease), a month-to-month bridge can help. It gives everyone the flexibility to adjust plans. 
• Short-Term or Seasonal Markets: In some markets, demand is seasonal or short-term. For example, rentals near colleges are often needed by semester (4–6 months) or semester-plus. In such cases, offering a month-to-month option can capture this market of short-term renters.
• Strict Local Laws or Regulations: In areas with stringent eviction laws or rent control, landlords sometimes prefer month-to-month leases. This way, if tenancy sours, the landlord can end it with notice rather than go through a long fixed-term eviction.

Read also: Subletting And Sub-Lease Agreements In The USA

Pros of Month-to-Month Agreements

Month-to-month leases have several advantages for landlords:

• Flexibility to End or Extend Quickly: You can terminate the lease with proper notice as needed, rather than waiting for a term to expire. This gives you more control over who is renting and when. 
• Easier Rent Adjustments: Landlords can raise the rent more frequently under a month-to-month lease. Since the lease renews each month, you can give the required notice (typically 30 days) to increase the rent, rather than waiting till the end of the lease agreement. 
• No Early-Termination Penalty: If either side needs to end the lease early, it’s a standard part of the arrangement – just give notice. You don’t face lease-breaking penalties like you might with a longer fixed lease. 
• Keep Good Tenants: Sometimes a landlord has a reliable, long-term tenant who asks to stay on month-to-month. Agreeing can preserve a good tenancy rather than forcing them out or chasing a new tenant. 

Cons of Month-to-Month Agreements

The flexibility of month-to-month leases comes with downsides:

• Higher Vacancy Risk: Because tenants can leave on short notice, you may face more frequent vacancies. A tenant might give 30 days' notice unexpectedly, leaving you with an empty unit to fill. 
• Unstable Income: Rental income can fluctuate month to month. Without a long-term lease guaranteeing occupancy, your cash flow is less predictable. 
• More Work: Frequent tenant changes mean more work overall. You’ll spend more time interviewing, screening, and moving new tenants in and out. Every vacancy involves extra cleaning, advertising, and paperwork. Over time, this constant turnover can be more burdensome than the occasional vacancy under fixed leases.
• Potential for Tenant Instability: Some tenants seek month-to-month for very short stays. This may attract less committed renters, for example, people in transition. There’s a chance of getting tenants who don’t stay long or who only want the lease until something better comes along. 

Read also: What is a Holdover Tenant? Definition & Holdover Tenant Legal Rights

Legal Considerations by State

Laws for month-to-month leases vary widely by state and locality, so it’s crucial to check your jurisdiction. 

However, a few general points apply:

Notice Periods for Ending a Month-to-Month Lease

In most places, you must give written notice to terminate a month-to-month tenancy. Most states default to a 30-day notice for landlords and tenants however there are a few exceptions: 

Always double-check your local and state laws, since some places may require longer or shorter notice depending on the situation.

Just-Cause Requirements for Ending a Month-to-Month Lease

In many areas, a landlord can end a month-to-month tenancy without a specific reason as long as notice is given. However, some cities/states with rent control or “just cause” laws do require a legally recognized reason to terminate, even for month-to-month tenancies. For example, in rent-controlled jurisdictions, a landlord may need to cite a reason like nonpayment or owner occupancy to evict a tenant, not just end the lease at will. 

Rent Increase Notices Requirements for Month-to-Month Leases

To raise rent under a month-to-month lease, most states also require written notice (often 30 days). Make sure to follow your state’s specific rules for rent increases (some states or cities require more notice or have limits on frequency).

Related: How to Increase the Rent: Free Rent Increase Letter

Other Local Rules: 

Some states or cities have unique requirements, such as how notices must be delivered or additional tenant protections. For example, a state might dictate the font size on an eviction notice, or require notice to be served in person or by certified mail. 

Best Practices for Landlords when Handling Month-to-Month Leases

Managing month-to-month leases doesn’t have to be complicated, but it does require some thoughtful planning. 

Start with a clear written lease. Even though the arrangement is flexible, putting everything in writing avoids misunderstandings. Your lease should explain that it automatically renews each month after the initial term and clearly state how much notice either party must give, typically 30 days. Including a “holding over” clause is smart; it ensures the lease continues on a month-to-month basis if a new agreement isn’t signed. 

Next, clarify the termination process. Spell out how notice must be given, whether tenancy can end mid-month or only at the end of a month, and follow your state’s laws. Using certified mail or another verifiable delivery method and keep copies.

When it comes to rent increases, follow the legal notice requirements—usually at least 30 days—and consider sending a friendly letter explaining why the increase is necessary. Being transparent helps maintain a good relationship with your tenants.

Screen tenants carefully, too. Month-to-month arrangements can mean higher turnover, so checking credit, background, and rental history upfront is essential. A reliable tenant could stay for months or even years, making the effort worthwhile. Some landlords even use a month-to-month lease as a “trial period,” giving them the flexibility to end the tenancy quickly if issues arise.

Since vacancies can happen more often, it’s smart to plan ahead for filling units. Start marketing the property a few weeks before a tenant gives notice, and schedule showings in advance so you can minimize downtime between tenants.

Property management software, like Landlord Studio, can help you create and send digital leases, collect rent online, and set up automated reminders for key dates. Using these tools reduces paperwork, keeps you organized, and ensures nothing falls through the cracks.

Read also: How Long Is a Short-Term Lease Agreement?

Final Thoughts: Simplify Month-to-Month Management with Landlord Studio

Month-to-month leases offer flexibility for both landlords and tenants—but managing them can get complicated, especially across multiple units. Landlord Studio streamlines the process by letting you track leases, automate communications, and collect rent online.

With features like instant payment receipts, automated reminders, lease alerts, and accounting tools for income, expenses, and security deposits, you’ll always stay organized and compliant.

Start using Landlord Studio today, get free lease documents, collect rent effortlessly, and manage your rentals with confidence.