Property management & leasing
Month-to-Month Tenancy: Definition & Example
What Is a Month-to-Month Tenancy?
A month-to-month tenancy is a rental arrangement with no fixed end date that renews automatically each month until the landlord or tenant gives proper notice to end it.
What does month-to-month tenancy mean?
A month-to-month tenancy can start with a written month-to-month agreement, or it can arise when a fixed-term lease ends and the tenant keeps paying rent that the landlord accepts.
The main tradeoff is flexibility. Either side can end the tenancy with notice, commonly 30 days, though some states and cities require longer notice for long-term tenants or require a legal reason for the landlord to end it. Landlords can also change terms such as rent with proper notice.
Landlords often charge a premium for month-to-month terms because turnover risk is higher and vacancies are harder to plan around.
Month-to-month tenancy example
A tenant’s one-year lease ends in August. She is not sure whether she is moving for work, so she and her landlord agree to go month-to-month at $75 more per month. In November she gives 30 days’ written notice and moves out at the end of December.
Related terms
- Lease AgreementA lease agreement is a contract between a landlord and tenant that sets the rent, the term, and the rules each side must follow while the tenant occupies the property.
- Lease RenewalA lease renewal is an agreement between a landlord and a current tenant to extend the tenancy for another term, often with updated rent or conditions.
- Notice to QuitA notice to quit is a written notice from a landlord telling a tenant to leave the property, or to fix a lease violation or pay overdue rent, by a certain date. It is usually the first formal step toward eviction.
- Tenant TurnoverTenant turnover is when a tenant moves out and a new one moves in, along with the costs and vacant time that come with replacing them. It is often expressed as an annual turnover rate.
Month-to-month tenancy FAQ
- How much notice is needed to end a month-to-month tenancy?
- Commonly 30 days, but it varies. Some states require 60 or 90 days for longer tenancies or for rent increases, and some cities require a legal reason for the landlord to end the tenancy.
