Posted in Finance, Accounting and Economics Terms, Total Reads: 365
Definition: Month-To-Month Tenancy
A rental agreement for a one-month tenancy that is renewed automatically unless tenant or landlord gives other a notice, usually 30 days in advance, to terminate the agreement. In a month-to-month tenancy agreement, a tenant can live in the home as long as he pays the rent and the landlord does not issue him a notice of vacancy.
It is good for the tenants who do not have a decided plan about the future and for how long they are going to stay there as it provides them flexibility. For landlords, it provides the option of getting rid of troublesome tenants who cause more trouble than their rent’s worth.
This agreement can cause unnecessary headache of finding other tenant or place to live if other party decides to terminate the agreement after a short period as these agreements can be terminated for any reason.