The most common lease agreement period is one year, with the option to renew your contract at the end of that one-year period. In fact, most people expect and even assume a one-year rental period when discussing anything about an apartment lease. However, there are other lease periods. The second most common lease period is the 6-month lease, but there is a month-to-month lease option. You may be thinking if there are advantages or disadvantages to this kind of lease, and you would be right to ask such a question. There are definitely pros and cons to a month-to-month lease, as well as reasons it is not a very common lease period that is used.
What is a Month-to-Month Lease?
So, what exactly is a month-to-month lease? First, let’s define what a lease is in Texas. A rental or lease agreement is simply a contract between the landlord and the tenant. It should be noted that if a lease period is less than one year, the lease agreement can be verbal. Of course, apartment complexes will always use written lease agreements regardless of the length of the lease to protect themselves. After all, proving a violation under a written contract that was signed and agreed upon by both parties is much easier to prove versus a verbal lease agreement.
In the context of a month-to-month lease, a written agreement is still often used to protect both the landlord and the tenant. Unlike most lease agreements, a month-to-month lease does not have an end date. Instead, these leases simply renew every month until either the landlord or the tenant terminates the lease agreement.
How a Lease Agreement Works for Month-to-Month Leases
A month-to-month lease functions almost exactly the same as a common lease for a one-year rental period. There are still terms and conditions that you agree to, like the payment amount, what is allowed, what is not allowed, etc. However, like we stated just before, there is not an end date for a month-to-month lease, and it will automatically be renewed every month. When it comes to terminating the lease, however, it’s a little different. Both the landlord and the tenant have the right to terminate the lease for any reason with a 30-day notice. This means that the landlord can provide the tenant with a 30 day notice to vacate the property, and after 30 days the tenant must move out, even if there were no lease violations. However, the tenant can also do the same without any penalty provided the tenant provides a proper 30-day notice.
The terms, conditions, and rules provided in a month-to-month lease are always in effect from the first month the lease begins. Unlike a one-year lease agreement, the landlord can modify the month-to-month lease terms so long as they provide a 30-day notice. This 30-day notice is basically to inform the tenant of the changes to the lease and allows the tenant to either accept the new terms by remaining at the property, or by providing a 30-day notice of lease termination. The changes to the lease can include the rental payment.
Is a Month-to-Month Lease Worth It?
For a lot of people, a month-to-month lease sounds attractive because they don’t have to lock themselves into a one-year contract. However, it’s not always as great as it sounds, and your personal situation will be the deciding factor of whether a month-to-month lease is worth it. The major downside to a month-to-month lease is the cost of rent. These leases pose a higher financial risk to the landlord, and as such, the monthly cost of rent is usually much higher than if you were one a one-year lease. With that being said, staying in an apartment for the long-term on a month-to-month lease is not going to be worth it. On the other hand, if you know that your tenancy is going to be temporary, like for only two or three months, then the higher monthly cost for rent will still be far less than having to secure a six-month or one-year lease where you may face financial penalties for an early termination.
Find the Perfect Apartment in DFW Today
Whether you need to find a temporary place to stay on a month-to-month lease, or you are looking for your perfect apartment, the Apartment Locating Specialists of DFW are here to help. We’ve been in the apartment and leasing industry for many years, and we have built a strong network of relations with numerous apartment complexes all across the metroplex. To start your search for your next apartment, just contact us today to get started.