The Pros and Cons of a Month-to-Month Rental Lease

Month-to-month rental leases are like renting for a little while without promising to stay for a long time. They’re not the same as the usual one-year leases. It’s good to know when it’s best to offer month-to-month rental leases and what’s good and not so good about them for landlords.

Here’s what everyone is saying about month-to-month rental leases

What Is a Month-to-Month Rental Lease?

A month-to-month rental lease in Phuket is a deal between a landlord and a renter that lasts for a month at a time. It keeps going until one of them gives a 30-day notice to end it. Usually, it’s used to keep a lease going, but they can also agree to start with a month-to-month rental lease.

Why Would You Like a Month-to-Month Lease?

Having a month-to-month rental lease can be good if you want flexibility in who you rent to or if you’re only renting out your place for a short while. It can also help if a fixed-term lease ends, but the tenants need more time to find a new home. But, month-to-month rental leases can make it tough to always have rent coming in regularly. So, it’s smart to be ready financially in case it takes longer than usual to find new tenants.

Pros of a Month-to-Month Lease

A month-to-month rental lease can be great if you want flexibility in your rental agreement. It’s good for tenants who need a temporary place or if you plan to sell your property soon. Here are some benefits:

Flexible End Date

You can end the lease by giving proper notice, so you’re not locked in for a long time. This gives you control over who rents your place and can suit tenants who plan to move soon. It’s also good for new landlords to try things out.

Raise Rent Price

If you renew a month-to-month rental lease, you can increase the rent without losing tenants. Check local laws and ourvillas to do this easily.

No Penalty for Ending

There’s no fee for ending the lease if you give proper notice. Short-term leases expect this to happen sometimes. Many landlords end leases in summer when it’s easier to find new tenants.

Keep Good Tenants

If you have good tenants who pay on time and take care of the property, it’s worth keeping them with a month-to-month rental lease until you need to find new tenants.

Cons of a Month-to-Month Lease

Even though month-to-month rental leases can be helpful, they also have some problems:

Uncertain End Date

Having a flexible end date might seem good, but for landlords, it can mean uncertainty. It’s better to have tenants who stay long-term so you can count on rent and know your property is taken care of.

Short Notice to Find New Tenants

Having only 30 days to find new tenants can be stressful. You might feel rushed to find someone, which could affect how well you check them out. Checking tenants is important to make sure they’ll pay rent on time.

Less Stable Rent Income

Having good tenants is nice, but having them temporarily isn’t as good as having them for a long time. Month-to-month rental leases mean rent money isn’t as steady.

Month-to-Month Lease vs. Lease Renewal

A lease renewal is when you make a new lease agreement with your current tenants. It usually lasts from six months to a year. You should offer a lease renewal about 90 days before the current lease ends. Sometimes, instead of signing a new lease for a specific time, landlords and tenants choose to continue the lease on a month-to-month rental basis.

Do I Have to Sign a Month-to-Month Lease?

It’s important to have your lease in writing and signed by both you and your tenant to make it legally binding. However, if your lease has a holding-over clause, you might not need to sign a new lease. The Holding Over clause says your lease will keep going month-to-month after it ends. Since it’s written in your lease and signed, you don’t need another month-to-month rental lease. This clause helps if your tenants stay longer than planned and you’re not sure if they still need to pay rent. Some landlords change this clause to say rent will go up automatically if the lease continues month-to-month.

Frequently Asked Questions