Month to Month Rental Contract

What is a month to month rental contract?

A month to month rental contract is a legally binding agreement that allows a tenant to rent a property on a rolling monthly basis without a fixed end date. Under this type of lease agreement, the lease continues automatically each month until either party provides proper notice to terminate. Every simple rental agreement month to month usually includes the rights and obligations of both parties, rental fees and payment terms, property description, and rules for termination.

This template could be customized as a month to month room rental agreement​, apartment, house, or villa agreement. If you need to rent out commercial property, including office space and warehouses, a commercial lease agreement shall be used instead.

The parties involved in a month to month rental agreement are a tenant and a landlord. A tenant is an individual or group of individuals who wants to rent a residential property on a month-to-month basis. A landlord is a property owner or a property management company that provides a residency for living and usage.

Who shall use this month to month rental agreement form?

A rental month to month agreement form is an ideal legal template for renting out various types of residential properties, including:

• landlords who want to be able to quickly regain their access to the property at any time;
• property management companies who want to avoid risk with long-term tenants and prefer short-term residential rentals instead;
• property owners who want to rent out their property for the first time and simply want “to taste the water”; and
• tenants who need a reliable basic month to month rental agreement to protect their belongings and secure temporary residence in a property.

What to include in a month to month rental contract template?

Drafting a comprehensive month to month rental contract template is not an easy task and requires two important things. First, it is attention to all legal details that may cause potential disputes between the parties in the future. Second is to know all key elements a solid month rental contract must include. Below we made for you a checklist of all important elements to include in this contract.

Property Details

Even a basic month to month rental agreement shall define the type, size, and complete address of a property that is being rented. This is a document’s main subject, and without it a document cannot become complete or legally valid.

If you are signing a month-to-month room rental agreement, make sure you also list all the furniture and equipment that is accessible to you during the lease term. It is not necessary to list all that equipment directly in the text of a contract, as you may incorporate it directly in the addendum.

Limitations of Usage

Before signing a month to month rental contract, a tenant shall be well aware of things they can and cannot do with the property. Therefore, a landlord should think of the following:

• if a tenant can invite guests who stay overnight
• if a tenant can live with pets
• if a tenant can use additional premises (e.g., attic, garage, etc.);
• if a tenant shall obey certain community rules (e.g., quiet time after 10 p.m.);
• if a tenant can host parties in a rented property, etc.

Rental Fee

Every month to month rental lease agreement shall define the amount of monthly rental payments. Usually all payments shall be paid at the beginning of the month.

Apart from that, defining other payment terms is also essential, including acceptable payment methods, banking details, and any late fees, if applicable.

Finally, the parties to a month to month lease contract sample shall also specify the amount of a security deposit. This is a sum of money used to protect a landlord’s property against possible damage or a tenant’s failure to pay rent on time. Security deposits are mandatory for long-term residential lease agreements and are optional for month to month rental contracts.

Duration

Even in the case of a simple month to month rental agreement, defining the contract’s duration is a must. This rent usually commences on the date of signing this agreement or on any other date in the future. In the case of a month-to-month rental, a lease is concluded for the period of one calendar month and automatically prolonged at the end of each month.

Such an automatic prolongation stops only when either party sends a prior written termination notice.

Applicable Law

Parties must also decide the laws of which state shall apply to this contract. Usually it is the laws of a state where a leased property is located. Thus, in the case of a California month to month rental agreement, the laws of the state of California shall automatically apply.

It is also possible to choose any other state where, for example, either of the parties to this contract is located or usually does their business. However, this is not that common for month to month rental lease agreements of residential properties.

How to customize a month-to-month rental contract at FasterDraft?

To get a fully customized document, follow a few easy steps below:

1. Click the “Create Document” button.
2. Answer simple questions in the form.
3. Select a template’s format—a simple month to month rental agreement PDF or Word.
4. Make a payment.
5. E-sign, download, print, and use the document.