What purpose does a month-to-month rental agreement serve?

A month-to-month rental agreement is a legal agreement between a tenant and a landlord, or a renter of property and owner, which specifies the terms and obligations of each party. It specifies things like the rental amount, information about deposits, number of tenants accepted and the acceptable use of the property. This form of agreement tends to renew every month and the terms and conditions can change upon initiation of either party.

Information required in a month-to-month rental agreement

The following information is required in a month-to-month rental agreement –

• The date on which the agreement is signed with clear mentioning of day, month and the year.

• Name of the landlord.

• Name/names of the tenants.

• Location of the property.

• The amount of monthly rental payment the tenant has to pay.

• The amount of security deposit the tenant has to pay and how it will be used.

• The date of commencement of the rental agreement.

• The due date of rent payment in every month.

• The amount of late fees if the tenant fail to pay on time.

• Whether the tenant is responsible for all the repairs and maintenance of the rented property.

• Whether the tenant can sublet the rental part with/without the permission of the owner/landlord.

• Whether the tenant is responsible for the payment of all utility bills like garbage, water and electricity.

• Whether the tenant can keep pets in the premises with/without the permission of the owner/landlord.

• Whether vehicles are allowed to be kept in the premises area.

• Restrictions on illegal activities like stacking arms or drugs inside the premises.

• The circumstances under which the owner/landlord can enter the rented premises.

• The procedure of vacating the premises.

• The circumstances under which the rental agreement can be changed or terminated.

• Signature of the tenant(s) with date.

• Signature of the owner/landlord with date.

By signing the month-to-month rental agreement, the tenants and the owner accepts the provisions of the agreement. So, it’s advisable to take legal help before signing the contract.

A month-to month rental agreement generally gets renewed every month unless it is terminated by either the tenant or the owner/landlord. The tenant has to give a 30 days written notice to move out of the property. In this form of agreement, the landlord can increase the rent any time after each month and can cause eviction of the rented premises upon 3 days written notice.