Tips & Guides / Leases

What is a Month-to-Month Rental Agreement?

By Sara Ruiz | Feb 24, 2025
Young couple moving into a month-to-month rental.

Whether you love to travel, are between jobs, or simply aren’t sure where you want to live in the coming months, there are many situations when traditional 12-month apartment rentals are too restricting.

With a year-long rental contract, you’re locked into the same location and rent payments for a substantial period, and if you need to break your lease early, there are generally hefty fees involved.

If you’re looking for a more flexible living arrangement, renting month-to-month might be the perfect fit for your needs. The following is everything you need to know about month-to-month leases, the benefits of this type of rental agreement, and how to find this type of lease in your city or town:

What is a month-to-month lease agreement?

A month-to-month lease is a rental agreement without a set end date. With a classic 12-month lease, renters commit to living in a rental unit for a full year (or sometimes more), but with month-to-month tenancies, there’s no set tenancy period—it can be as long or as short as you need, and your lease renews each month until you provide a proper notice period that you want to terminate the lease. This allows you to stay in the rental for as little as a few months or as long as several years, and you have the power to terminate your lease at the best time for your situation. This type of arrangement can also impact your rental income, as landlords may adjust rental rates based on demand.

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Month-to-month vs short-term lease agreements: What’s the difference?

Month-to-month lease agreements and short-term lease agreements are both rental agreements between a landlord and a tenant but differ in their duration and terms. While they do have some similarities to short-term leases, month-to-month leases aren’t the same as sublets or rentals you’d find on vacation rental sites.

A month-to-month lease agreement allows tenants to rent a property on a monthly basis, with no set end date. Before signing a month-to-month lease, potential tenants typically has to go through the landlord’s same vetting process as you would with a classic apartment rental, and this type of lease renews automatically each month unless either the tenant or landlord provides notice to terminate the lease. The terms of a month-to-month lease agreement tend to be more flexible, allowing tenants to make changes to their rental situation more easily. In some cases, tenants may operate on a verbal agreement, though written leases are typically preferred to avoid disputes.

A short-term lease agreement, on the other hand, is typically for a fixed-term lease of just a few months (usually three to six months). Short-term leases are often used by renters who need temporary housing, such as students or people who are relocating for work. These types of leases tend to be less flexible than month-to-month agreements, with stricter requirements for notice of termination and less ability for tenants to make changes to the rental situation or break the lease.

How does a month-to-month lease agreement work?

The process of applying for a month-to-month lease will vary depending on the landlord or company that you’re renting from, but generally speaking, you’ll apply for your rental agreement the same way you would with a standard lease. You’ll typically need to fill out an application, provide proof of income, and agree to a credit and/or background check. Once your application is approved by your landlord, you’ll set a move-in date and typically pay your first month’s rent. Depending on state laws, some landlords may require a security deposit for a month-to-month lease.

Once you’ve moved into your new home, the experience will be similar to other rental properties. You’ll pay rent and utilities monthly—some rentals, like the ones through Landing, may have utilities bundled into your rent payment—but the key difference is that if you decide you want to move out, you simply have to give notice to your landlord. The terms of the lease will stipulate how much notice is needed, but most landlords consider a 30-day notice to be standard for this type of agreement. As long as you tell your landlord that you plan to move out in advance, there are no fees to terminate your lease agreement, even if you’ve only been living there a few months. Be mindful of your lease expiration date, as failing to provide proper notice before it ends may lead to additional fees or complications.

Is a month-to-month rental agreement right for you? Pros and cons

As you can probably imagine, there are several benefits of a month-to-month rental agreement. The main perk of this type of rental agreement for tenants is that your lease term is flexible—if you get a new job or decide you don’t like the neighborhood, you can simply terminate the lease and move to a new home.

Benefits of a month-to-month rental agreement

The following are several situations when renting on a month-to-month basis is an ideal choice:

You’re planning to switch jobs

If your current lease is ending and you’re in the process of switching jobs, you may not want to commit to a yearlong rental agreement. With a month-to-month lease, you won’t have to worry about early termination fees from your landlord if your new career requires relocation.

You need to visit family

If you need to provide care for an aging or sick relative, a flexible-term lease will allow you to have your own space, and you can stay for as long as needed—even if you don’t know how long that might be.

You want to travel

If you have a remote job that can be done from anywhere, you may want to travel around and experience different cities. Month-to-month lease agreements allow you to stay for as long as you’d like before moving to a new location.

Your home is under construction

Monthly term leases are beneficial if you’re waiting for work to be done on your existing home but aren’t sure how long the construction will take.

You have a temporary job

If you’re a traveling nurse or have another temporary position, a monthly lease gives you the flexibility to move out as soon as your job ends.

Cons of a month-to-month rental agreement

A month-to-month lease may not be the best fit for you if you’re looking for a long-term commitment. A month arrangement is not a long-term solution. If long-term tenants plan on staying in a unit for more than a few months, they may prefer a lease agreement with fixed terms and conditions. Long-term lease agreements generally offer more stability and lower rent increases compared to month-to-month rentals.

In addition, while month-to-month agreements offer greater flexibility, they also come with the potential for rent increases. Landlords can raise the rent as often as they prefer, within legal limits. Rental prices in high-demand areas fluctuate frequently, depending on the rental market, and month renters may find their monthly rates increasing more frequently than those with long-term leases. Lease renewal terms may also be less predictable in a month-to-month rental arrangement.

How to find a month-to-month rental agreement

Most property owners and landlords prefer fixed-term leases, which provide consistent tenancy for each dwelling unit. After your long-term lease ends, you can ask your landlord whether they’ll consider a month-to-month rental lease—obviously, this works best if you have a good relationship with your landlord, pay rent on time, and have been a reliable tenant.

Alternatively, your friends, family, and colleagues may know a landlord who is renting out a property with a month-to-month rental agreement. Sharing that you are looking for this type of tenancy can open up some options. Posting on social media asking for leads or searching for rental groups on platforms such as Facebook can also help you find a landlord who may consider offering a month-to-month rental agreement.

Month-to-month rental agreements with Landing

It can be trickier to find a month-to-month rental agreement if you’re a new renter. In these instances, you might want to consider going through a company like Landing, which has furnished apartments in cities across the U.S. The rentals all operate on month-to-month rental agreements, and with a Landing membership, there are no application fees or security deposits required from tenants. Every apartment is outfitted with stylish furnishings, so you don’t have to worry about toting furniture across the country, and you only need to provide two weeks’ notice before transferring to another rental. If you’re interested in a month-to-month lease, learn more about what a Landing membership can do for you!

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Sara Ruiz

Sara is a Social Media Manager at Landing who’s visited over 80 cities in the U.S. (and counting!). Based in Mexico City, she thrives on discovering hidden gems, from cozy coffee shops to inspiring local art scenes, and loves finding ways to make every new destination feel like home.