A ‘month-to-month rental agreement’ is a legal rental contract that a tenant and a landlord renews monthly. The requirements governing this agreement varies from state to state. It also differs from your normal agreement in the sense that it stays in force till the end of the month, after which it has to be renewed.
Before entering such an agreement, it is necessary that the background of the tenant see to it that they meet the stringent criteria set forth in the agreements. Of particular concern should be the creditworthiness of the said individual.
How to write a Month-to-Month Lease Agreement?
To be able to draft quality and long-lasting agreement, you, by all means, have to make use of the ‘Month-to-Month Lease Agreement maker.’ This is a template or wizard that basically takes you through the necessary steps from start to finish. The template prompts you by asking a series of leading questions that you fill out.
Lease Agreement Templates
How Does a Month-to-Month Lease Agreement Work?
Unlike week to week lease agreement, the month-to-month lease agreement is renewable on a monthly basis. Simply put: The agreement will be deemed to be of no effect in case the tenant does not make an effort to renew it after the lapse of the one month. Below are the steps followed to actualize a month-to-month lease agreement:
Step I: Invitation to Lease
Your first and foremost step should be to invite prospective tenants to enter the lease agreement. This information is disseminated through the local dailies, property rental sites, and other avenues that deal with real estate.
Step II: Screen the Applicants
Upon receiving the applications from far and wide, you have to go ahead to screen the applicants. This entails checking their criminal background, creditworthiness, behavioral traits, and any issue of common interest. The following resources might help:
- VerticalRent.com (for free limited background checks)
- MySmartMove.com (detailed background checks for $25)
- Employment (Income) Verification
Step III: Negotiate the Terms
At this stage, you have to negotiate the terms that govern your rental agreements. Here, you will discuss the security deposit, termination period, the start of the lease, and the other terms of references that shall stay in force while hosting the tenant.
Step IV: Draft the Lease
Having concluded the negotiations, you should now draft the lease. This basically entails putting down the terms of the agreements in writing. It is important that you use the State-specific leases to avoid any ambiguities. These specific clauses will generally have the precise clauses and disclosures that are necessary and relevant to the property area.
Step V: Execute the Lease
You should then schedule a meeting with the tenant-to-be to sign the details you will have jotted down already. At that meeting, the following documents or pieces of information have to be availed:
- Tenant’s responsibilities
- First (1st) month rent
- Security deposit (amount and applicability)
- Rent proration amount (in case the tenant moves in before the first day of the month)
- Parking fees (if applicable)
- Pet fee (if applicable)
- Pre-paid rent (if applicable)
- Landlord’s responsibilities
- Access to property
- Copy of executed lease
Step VI: Taking over the Occupancy
The tenant now has the leeway to occupy the property. This can happen in two main options or ways. First, the tenant may wait until the month starts to enter. Alternatively, he may opt to move in immediately. In this case, the pro-rated rent shall apply.