Although there are many similarities between a Month to Month Rental Agreement and a Lease, there are also some major differences.
A month to month rental agreement is a contract between a tenant and a landlord that provides a tenancy for short periods, usually for one month at a time. In some cases, it is legal for landlords to base their rental agreements on other time frames. This could be for rent to be collected once a week or every two weeks, depending on the agreement between the parties.
Unless otherwise agreed upon, a month to month rental agreement is automatically renewed each month. It is usually stipulated in the contract that a written notice be given (usually 30 days) to terminate the contract.
Under a month to month rental agreement, a landlord can also raise the rent or make certain changes as long as there is proper written notice. In some areas where rent control is enforced, rent may only be raised in accordance with the rental laws of that particular jurisdiction.
There are many issues that rental agreements and leases have in common. Both cover topics such as the amount of rent, how much is required as an initial deposit, how much of a security deposit is required, how many people can live in the property, the disposition of pets, and how the property is to be used.
The main difference between a month to month rental agreement and a lease is the length of the tenancy. While a month to month rental agreement is considered short term, usually bi-weekly or monthly, in most cases a lease agreement locks a potential tenant into a contract for a longer period of time, usually a year.
Most landlords prefer month to month rental agreements because it allows them an easier method of evicting problem tenants. In most states, rental agreements can be terminated without having to give the tenant an explanation, although the cancellation of the agreement has to be in writing.