A lease Concluded on monthly basis is termed as MONTH-to-MONTH LEASE. Under this lease, the property is initially and technically only rented for one month, and it is automatically renewed month by month. https://efinancemanagement.com/sources-of-finance/month-to-month-lease

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https://efinancemanagement.com/sources-of-finance/month-to-month-lease
Month-to-Month Lease

2. 1. Introduction
2. When to Use?
3. Advantages
4. Disadvantages
5. Month-to-Month Lease Contract
6. Reference
Content

3. A lease Concluded on monthly basis is termed as MONTH-to-MONTH LEASE. Under this lease, the property is
initially and technically only rented for one month, and it is automatically renewed month by month. This automatic
renewal will continue until one of the parties announces its intention to enter into or withdraw from the lease with 30
days notice.
Introduction

4. Circumstances where such lease can be used is as follows:
1. When he does not intend to sign a new lease, but also does not want to leave the property immediately.
2. The tenant is not sure how long he can continue the existing lease.
3. When a landlord sees potential for high rents in the next few months.
4. Such a lease is beneficial if the property is intended for tourists or students.
5. When a tenant whose job is such that he can no longer stay in one place.
When to Use?

5. 1. Higher lease rental
2. Flexibility
3. Ability to update rent price
4. No penalty for ending lease
5. End lease at optimal time
6. Keep quality tenants
Advantages

6. 1. Uncertain end date
2. Finding new tenants get difficult
3. Less stable
4. Cost of turnover
5. Loss of income
6. Unfavorable market scenario
Disadvantages

7. Both month-to-month lease and the usual lease include similar clauses. This contract is designed to automatically renew at
the end of the month. And will be extended until either party gives a 30-day period to terminate the lease.
A landlord can include a clause to increase the rent after a set period of time in the contract. Such a clause gives the
contract some stability and encourages the tenant to stay longer.
Month-to-Month Lease Contract

8. Reference
To know more about it, click on the link given below:
https://efinancemanagement.com/sources-of-finance/month-to-month-lease