Why Month-to-Month Renting Is The Smart Choice For Today’s Renters
by Arnab Dey Real Estate 22 February 2023
With over a billion people living in the world, it’s no wonder that the need for shelter is constantly skyrocketing.
The exact reason you are looking for a house to rent might be the same as other people; this makes it hard to account for all the situations with the exact nationwide lease standards for a month-to-month renting process.
Generally, the duration of a lease contract is twelve months, and there is also a possibility of three months to two years. Mostly, long leases are cheaper than short leases because of the faster schedule to move out in short leases. But in a situation where you aren’t sure about the future and you don’t know when you might need to move out, the best option to choose is a month-to-month lease.
How Does A Month To Month Lease Work?
Month-to-month rentals usually establish an agreement between a tenant and the landlord. In this situation, your tenancy has no ending date, so every month, the lease will renew automatically until you cancel the contract with the landlord. You and the landlord both have the right to cancel the contract, and you don’t have to pay any penalty.
However, you must notify the other party 30, 60, or 90 days before the day you wish to terminate the contract. A month-to-month renting and lease can be short or long, depending on your relationship with the landlord; you can spend years renewing the contract. Also, precisely the way you have the power to terminate the contract at your will, the landlord has the right to force you to leave the house at any moment, even if you are not ready.
Furthermore, you can negotiate with the landlord for the rental fee to remain the same amount for a certain period without increasing; this is advantageous to the tenant because, even though they aren’t using a fixed-term lease, they are using similar features and is also beneficial to the landlord because, since they provide measure security to the tenant, it will keep them in the house for a good period.
If the house is located in an area where the rent fee fluctuates, having a month-to-month lease with a fixed price agreement will provide the landlord with a fixed income every month. Even though a month-to-month lease is not always perfect for all situations, its flexible nature offers many benefits to both the tenant and the landlord in most cases.
Why Should You Choose A Month To Month Renting?
There are many situations when committing to representing the fixed-term renting might not be of benefit to you; in this case, the best option to choose is month-to-month renting. Moreover, it offers many benefits, such as:
Some tenants don’t stay in one place, mostly due to the nature of their jobs, so they always move from one place to another. Committing to an annual lease can be challenging since they will only be wasting money without staying in the house. For these people, a month-to-month lease is an excellent option since it provides great flexibility.
The second category of people that find month-to-month renting beneficial are those whose house is under reconstruction or renovation, so they are looking for a temporary home. To them, too, renting an annual house is like wasting money; having the ability to rent a home temporarily ensures their pockets are safe, and they don’t have to experience legal or financial problems linked to breaking a long-term lease.
Furthermore, it allows you to move in or out of the house at your own will. For example, if you find a place with a reasonable rent fee that is maybe better than the current one you are living in, you can permanently terminate the contract and move to the new house.
Lastly, a month-to-month lease is also advantageous to people that want first to know their neighbourhood or landlord before they commit to an annual lease.
2. It helps you avoid penalties
Long-term leases generally have month-to-month renting penalties for leaving abruptly or early, but in monthly leases, you can freely cancel the contract at your will; just if you want to avoid unnecessary problems, it’s best to notify the landlord days or months before the date.
Related: Average Monthly Rents In UK Hit Record High
3. You can relocate, especially during a pandemic
Remember the COVID-19 pandemic that happened in 2020; it brought a significant disaster to many people’s lives. When you sign a month-to-month lease, and unfortunately, something happens, you can easily relocate to a new place.
If the current apartment is not in line with your necessities or if, for example, it’s your job that tied you to the area, and now you are no longer working with the company, you will find it easy to relocate compared to someone tied to a long-term lease.
4. You can easily switch to an annual lease
While it’s impossible to switch from an annual lease to a month-to-month lease, the reverse is the case for a month to month renting. Some people choose to start with a month-to-month lease if, for example, they want to be familiar with the neighbourhood first; your lease is tailored to your needs, and you can terminate it at any moment, thus reducing worries and stress. If it turns out you like the neighbourhood or the apartment and you want to switch to a long-term lease, you can easily do so.
5. Some month-to-month leases are already furnished
Even though not all month-to-month leases are furnished, the percentage of ready-made ones is much higher.
This is beneficial to those that constantly transit or travel all time; since it’s stressful to be buying furniture in every house you move in, a month-to-month rental can save you a lot of trouble; you will only need to carry your suitcase and move-in.
If you are looking for a way to change from a long-term lease to a short-term lease, then a month-to-month lease is the best option because it will provide you with freedom and many other benefits like flexibility, avoiding penalties, relocating at your will, and many more.
Remember, before you sign any lease, ensure the month-to-month renting terms are written clearly in the contract.