A month-to-month (MTM) rental agreement is a written statement that details the conditions for a short-term lease. Unlike a long-term lease, which usually lasts for a year, this type of agreement can be terminated or automatically renewed on a monthly basis. Oftentimes, long-term leases that lapse or exceed the agreed term become month-to-month rental agreements. In such an arrangement, the tenant and landlord typically renew the lease every 30 days.
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For this type of lease agreement, you may encounter the following terms:
Step 1—Set up the premises.
To get inquiries, the landlord must first make sure that the premises offer good living conditions. Aside from this, create a design that would fit the demographics of your ideal tenant. This first step ensures that tenants will be willing to renew their month-to-month lease agreements.
Step 2—Take pictures.
Take pictures of each space in detail. Shared spaces like lounges, gardens, or parking spaces should also be included. These will help attract tenants who are willing to stay at the premises on a month-to-month basis.
Step 3—Find your ideal tenant.
Once you have the materials you need, create an online rental listing. Here, you can post the pictures, details of the lease, and your contact number. You may also announce it in the local newspaper to get more inquiries. You may also hire a representative from your local property management business to handle this for you. Take note, though, that you will have to pay certain commission fees. Aside from this, you will also have to properly orient them regarding lease agreements and lease use.
Some of the platforms you can use include:
Step 4—Do a background check.
It will be tricky to select tenants for month-to-month rental agreements. Still, the quickest and easiest way to conduct a background check is to check on social media and the landlord-tenant database. You may also call the tenant’s previous month-to-month lease landlords and long-term employer for further details.
You can also ask the tenant to fill out a rental application form to get essential information.
Step 5—Settle the monetary aspects of the lease.
Once the landlord finds the ideal tenant, they can settle the financial part of the lease. The landlord will typically receive the first month’s pay plus the security deposit. For tenants, make sure the landlord acknowledges the receipt of your payment. This obligation per month will reoccur every 30 days, so you may decide if a bank deposit or wire transfer will also be an acceptable mode of the lease payment.
Step 6—Sign the lease agreement.
Lastly, the landlord and tenant must agree on the provisions of the contract. You may download FormsPal’s fillable month-to-month rental agreement template below or use our step-by-step lease builder. Once both parties sign the agreement, they can proceed with the lease.
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|Monthly Lease Agreement
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Step 1—Download your preferred file type.
Download the lease agreement template:
The required PDF editor should already be pre-installed on your computer. If it is, the file should open with ease.
Step 2— Fill out the first paragraph.
Start the month-to-month lease agreement with the following details:
Step 3— Complete the opening paragraph of the recitals.
The full address of the premises must be written in detail like so:
Step 4— Further describe the premises.
Sections 1 and 2 describe the premises that are covered by the month-to-month lease. For the space provided (1), the landlord may describe improvements to be made at the premises before the tenant moves in. If this is not applicable, the landlord may write “none”.
Note: The phrase “As-is where-is basis” means that the premises are accepted by the tenant in their current state. This is common to most month-to-month lease agreements, but the tenant can always request improvements.
Step 5— Write the commencement date.
On the blank provided in Section 3, write the date when the month-to-month lease will begin. Take note that if either the tenant or the landlord decides to terminate the month-to-month lease, they must send a notice 30 days in advance.
Step 6— Provide details about the lease.
Fill out section 4 as follows:
Step 7— Indicate the security deposit.
For a month-to-month lease agreement, a security deposit must be made. This ensures that the tenant will leave no financial obligations behind if ever they leave without advanced notice 30 days before vacating the premises. On blank number 1, write an amount that is anywhere between 50% to 150% of the monthly rent.
Step 8—Describe how the utilities should be settled.
Fill out the following details in section 6:
Step 9—Give instructions for maintenance requests.
Blank 1: For the first blank, the landlord must indicate a point person (usually the administrative personnel). This person will receive and attend to maintenance requests during the course of the month-to-month lease. It’s best if you write the full name and address. Meanwhile, the contact number may be optional.
In addition, fill out the following details:
Step 10— Review the liability statement.
Section 8 explains that the tenant releases the landlord from any responsibility or liability, except for negligence. For example, landlords of month-to-month rentals may still be responsible for not disclosing any harmful living conditions or not responding to repair requests.
Step 11— Decide about the pet policy.
Section 9 explains the month-to-month rental agreement’s pet policy. To be detailed, fill out this like so:
Step 12— Read the standard clauses.
Sections 10 to 11 are standard clauses, but must still be reviewed by both the landlord and tenant. In rare cases, the tenant or the landlord may request a revision. FormsPal highly encourages that they hire an attorney to revise the contract.
Step 13— Write the contact details of the landlord and tenant.
In order to receive notices, the landlord and tenant must indicate their details.
Step 14— Describe the parking space.
Step 15— Read through the rest of the standard paragraphs.
Sections 15 to 20 are standard clauses in both short-term and long-term contracts. Still, these must be fully read and understood by both parties.
Step 16—Sign the contract.
Finally, the landlord and the tenant may sign on the last page of the monthly lease agreement.
A month-to-month rental agreement can definitely be ideal for those looking for temporary accommodation. However, like any lease agreement, this type of rental also has its pros and cons. It’s best to weigh the benefits and be prepared for any complications. To ensure that your lease agreement is legal, you may use FormsPal’s fillable form, which you can download above.