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Month-To-Month Tenancy


Month-to-month tenancy is a type of rental agreement in which the tenant occupies the property on a monthly basis. There is no specified end date, as the contract renews every month. Either party may terminate the agreement with proper notice, often 30 days.


The phonetic transcription of “Month-To-Month Tenancy” is: /mʌnθ tə mʌnθ ˈtɛnənsi/

Key Takeaways

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  1. Flexibility: Month-to-month tenancy, also known as periodic tenancy, offers flexibility for both landlords and tenants. Neither party is locked into a long-term agreement, allowing tenants to move out and landlords to change the terms of the agreement with proper notice.
  2. Notice Requirements: Rules vary by location, but typically, both landlords and tenants must give 30 days’ notice before ending a month-to-month tenancy. If not given, the lease continues to renew each month.
  3. Risk of Rent Increase or Termination: Since the terms of the agreement typically reset each month, landlords may increase rent or even terminate the lease more easily than with longer-term leases. However, they must still respect any local rent control regulations and tenant laws.



Month-to-month tenancy is important in business/finance as it refers to a rental agreement where the lease is renewed at the end of each month. This type of tenancy offers both the tenant and the landlord flexibility. For tenants, it provides opportunity to vacate the premise with a shorter notice, typically 30 days, without violating the lease. For landlords, it allows them the freedom to adjust rental rates or lease terms with a shorter notice too. However, this can result in a less stable income stream for landlords as tenants could leave at any time, and can also mean potential for more frequent rent increases for tenants. Knowing and understanding month-to-month tenancy is crucial for effective property management and investment decisions.


The main purpose of a month-to-month tenancy is to offer flexibility to both the tenant and the landlord. This type of arrangement is particularly beneficial for tenants who may be uncertain of how long they’ll need to rent a property. For example, a person who is in a city for a temporary job or an individual who is house hunting and needs a place to stay in the meantime may opt for a month-to-month lease. It provides them the amenity of not committing to a long-term lease which generally lasts for about one year or more. Such tenancy arrangement allows them to move out without penalty, given proper notice is served, usually about 30 days.For landlords, a month-to-month tenancy can serve its purpose in different circumstances. For instance, if the landlord is trying to sell the property, a month-to-month tenancy arrangement provides them the flexibility to vacate the tenant if a potential buyer wishes to move in immediately. Moreover, for landlords who wish to rent at higher rental rates during the peak season, a month-to-month lease provides the flexibility to adjust rents or to find new tenants. However, the risk involved is higher vacancy rates as tenants can choose to vacate at short notice.


1. Residential Rental Property: An individual rents an apartment in New York City and has not signed a long-term lease agreement. Instead, the individual and the landlord agreed on a month-to-month tenancy. This gives the tenant the flexibility to move out at any point given sufficient notice (usually 30 days), but also allows the landlord the chance to change the terms of the agreement, such as increasing the rent, with similar notice.2. Commercial Office Space: A startup company rents office space in a coworking environment like WeWork on a month-to-month basis. This arrangement benefits the company as it provides them the flexibility to either expand or minimize their office space based on the needs of their growing business, with only 30 days notice required.3. Retail Business: A pop-up shop operator enters into a month-to-month tenancy with a shopping mall owner. The operator only wants to rent for specific months in the year such as November and December for the festive season. This short-term tenancy allows the retailer to use the space for a limited period without a long-term commitment.

Frequently Asked Questions(FAQ)

What is a Month-To-Month Tenancy?

A Month-To-Month Tenancy is a type of rental agreement where the lease is renewed at the end of each month. If either the landlord or tenant wishes to terminate the agreement, they generally provide a 30-day notice.

Who can terminate a Month-To-Month Tenancy?

Both the landlord and tenant have the right to terminate a Month-To-Month Tenancy. This generally requires advance notice, usually 30 days, to the other party.

Can a landlord increase the rent during a Month-to-Month Tenancy?

Yes, a landlord may increase the rent during a month-to-month term. The landlord is typically required to provide the tenant with written notice, generally 30 days in advance of the increase.

Are there any benefits to a Month-To-Month Tenancy for tenants?

Yes, Month-To-Month Tenancy offers tenants flexibility, as they are not locked into a long-term lease. This could be a benefit if the tenant’s circumstances may change in the short term.

Are there any drawbacks to a Month-To-Month Tenancy for landlords?

For landlords, Month-To-Month Tenancy may result in a higher turnover rate of tenants and potential periods of vacancy, which could lead to loss of rental income.

How does a Month-To-Month Tenancy affect the stability of the tenancy?

While Month-To-Month tenancies provide tenants with greater flexibility, they also offer less stability since landlords can also opt to terminate the agreement with a 30-day notice.

Is a written agreement necessary for a Month-To-Month Tenancy?

It is advisable to have a written agreement, clearly outlining the terms and conditions of the month-to-month lease, even though it’s not always legally required. This offers both the landlord and tenant legal protection.

Can a fixed-term lease be converted to a Month-To-Month Tenancy?

Yes, once a fixed-term lease ends, it often automatically converts into a month-to-month tenancy unless a new lease is signed or the tenant moves out.

Related Finance Terms

  • Lease Agreement
  • Rental Payment
  • Security Deposit
  • Notice Period
  • Renewal Option

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