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Month To Month Lease

By definition, leases are usually operated at fixed prices and on finite terms. Unlike these standard forms of leases, a month to month lease is one that operates on a monthly basis. Rather than a yearly or six month lease, the landlord and tenant only agree to consent to a lease for a month, thereby needing to renew the lease each month if they hope to continue. For tenants, a month to month lease is advantageous as they can leave the agreement easily. In the same manner, landlords are able to release tenants without eviction while also being able to attract more tenants. However, landlords who operate on the basis of a month to month lease are able to raise rent with each month, and can also introduce new terms. Landlords can also be at a disadvantage if they continually end up with short term tenants.

Fast Facts

  • Month to month leases are becoming more and more common
  • asking rents dropped by .6% in each of the first two quarters of 2009

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