by: NOLO

A M2M rental agreement establishes a tenancy for for a one month. A month to month rental agreement is automatically renewed each month unless you or your tenant gives the other the proper amount of notice (typically 30 days) and terminates the agreement. You may increase the rent, change other terms of the tenancy, or terminate the lease on relatively short notice (usually 30 days) — unless local rent control ordinances specify otherwise.  For details on how to write a 30 day notice see our post at how to write a 30 day notice. A fixed term rental lease agreement obligates both you and the tenant for a set period of time, usually a year. You can’t raise the rent or change other terms until the lease runs out, unless the lease itself provides for modifications or the tenant agrees in writing to the changes. In addition, you usually can’t ask the tenant to move out or prevail in an eviction lawsuit unless the tenant fails to pay the rent or violates another important term of the lease or state or local law. At the end of the lease term, you can either decline to renew it or negotiate to sign a new rental lease agreement.  However, if you have decided to go Section 8, only a fixed term rental lease agreement is acceptable.

Which is better? Many landlords prefer a month to month lease agreement, particularly in tight rental markets where new tenants can be easily found and rents are trending upwards. The flip side is that a month to month rental agreement almost guarantee more tenant turnover, and more work to keep rental properties full.  Remember that a Lease is only as effective as the vetting process you performed with your rental application pdf.

Landlords often prefer fixed term rental lease agreement in areas where there is a high vacancy rate or where it is difficult to find tenants for certain seasons of the year — for example, in college towns that are often deserted in summer.

See our posts o:

• how to write a 30 day notice.
• how to start a property management company.