Is a Month-to-Month Lease Right for You?

Young realtor explain lease agreement or purchase contract withIf you’re the type that likes to move a lot, a month-to-month lease could be the answer. But, before you sign the first month lease you find, you need to know your options. Month-to-month leases are less committal than traditional 12-month and 18-month leases, but they also come with their own strings that could prevent you from moving when you need to. So, it is best to weigh the pros and cons before signing anything.

Month-to-Month Leases are Flexible

The biggest reason people opt for a month-to-month lease is because they plan on moving soon — such as taking a temporary job or renting just until a home sale goes through. These allow you to have a place to live without any long-term commitments. Also, if for some reason you don’t need to move the next month, you can renew — giving you as much time as you need until you’re ready to relocate.

You’ll Pay More in Rent

Because you’re renewing your lease every month, some property management firms actually charge more for rent on their month-to-month contracts than their annual or longer contracts. This is because a monthly lease means they could have a vacancy soon, which is an expense for them. Also, because you’re renewing every month, the property management team has the opportunity to raise the rent according to market rates every time you renew — while with a yearly lease they can only raise the rent when your year is up.

Being in One Place Can Be Easier

Moving isn’t all that easy. When you stay in an apartment long-term you get to know your property managers, can get terms that are more flexible and you get used to the area. If you’re the type that doesn’t like change, you won’t enjoy a month-to-month contract — because your budget could change significantly depending on the rental market.

Be Wise With Month-to-Month

A month-to-month lease should really only be used if you need a short-term option. If you know you’re going to be relocating in just a few short months, sign a month-to-month, but if it’s up in the air, talk to the property owner about a quarterly lease or even a six-month lease versus the month-to-month. That way you have more stability with your rental payments and have a little time in between moves to figure out what you want to do or where you want to go.

May 2014
POSTED IN Legal Tips