A month-to-month lease has a lot of appeal in it for someone who does not plan to stay for long, but is it the right choice for you and your personal circumstances?
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Pros of a month to month lease
A month-to-month lease can be desirable for many reasons. If you do not see yourself living in one place for too long, this kind of rental agreement can be the best option.
A short team lease has many advantages but who those advantages apply to is a different storey. Depending on your short-term and long-term goals, the pros and cons vary.
A few of the main pull points of a month-by-month lease are the flexibility it allows, the lack of charges and penalties, and just how adaptable you can be in a rental agreement such as this one.
A 6-month lease may have to turn into a 3-month lease for multiple reasons. Whatever your purpose for having to cut a lease agreement short is, a month-to-month lease gives you the cushion you need.
The next, obvious question is, how do month-to-month leases work? Instead of signing an agreement to be a tenant for a year or more, your agreement can be terminated on a monthly basis.
The question of, what is a monthly lease, is best answered by the word: flexibility. Your contract is flexible; therefore, you can be flexible.
Lack of charges
As part of this flexibility, when you finally decide to move on after however many months you’ve lived there, you are totally immune from any possible charges. All that is necessary is a month-to-month lease notice stating your intent to leave.
This notice must be provided to your landlord at most 28 days before you intend to move out. Unlike with a fixed-term agreement, you won’t be spending nearly as much as you would have to if you were looking to end a yearly lease early.
Things come up in life, so ensuring that you won’t be charged for having to face them is a definite advantage of a month-to-month lease.
If you are enjoying your new place, you are allowed to turn a month-to-month lease into a fixed-term lease. Most commonly, they are leases of six or twelve months.
Upon settling in a new flat or home, many people find that they like it much more than they thought they would. The flexibility of a lease such as this one provides the chance to change your mind about earlier decisions.
When it comes to living, this is an important choice to be granted. It can save you a whole lot of stress and last-minute house hunting.
As long as the landlord has been properly notified, there are no penalties for ending your lease early. This is because, with a month-to-month lease, it is expected for the tenant or landlord to break the lease at some point anyway.
This is an especially popular trend during the summer months when the demand for rentals is significantly higher. Even if you are given the notice to vacate a month-to-month lease in Victoria, don’t panic, you will most likely be able to find a new place with a similar leasing system right next door.
Cons of a month to month lease
Along with all the advantages of jumping into a month-to-month lease, there are a few concerns that many people have. Is a periodic tenancy legal? What is the notice period for a periodic tenancy? Do you have to give a 30-day notice on a month-to-month lease?
Don’t worry, it’s not as complicated as you may think.
The disadvantages that come with signing a lease like this are highly dependant on your short-term goals as well as your long-term goals. Depending on what you want, these cons may present little to no problems for you.
When it comes to a periodic tenancy, Victoria is similar to most places in terms of reasons why a landlord would increase rent. The first reason is handing out higher rental costs due to comparison with long-term leases in or around that area.
Another reason why a periodic lease in Victoria may be more expensive is that a landlord may try to increase the rent while you are still living in the property. Even though there are no lease break fees in Victoria during a month-to-month lease, if you are not aware that a landlord is only allowed to increase rent once during a six-month period, you may be bamboozled.
If you find in your agreement that your landlord is allowed to increase rent multiple times within a six-month period, you should consider the fine print to see if it works with your situation.
Difficult to find
Finding a reliable landlord who allows month-to-month leases on their property may be more difficult than not. They tend to prefer stability, which is ensured in a year-long agreement. A fixed-term lease arrangement tends to be the desired option for landlords.
On the other hand, a long-term lease can become a short-term lease after a fixed period of time in many instances. Make sure that you know when the lease is up to decide if you want to switch over to a short-term agreement or stick with what you have.
Surprisingly, the landlord is allowed to end your lease agreement with just fourteen days’ notice from the end of the term. So, month-to-month leases are flexible…to an extent.
If you are a frequent month-to-month lease tenant, this won’t look the best when applying for future properties. Landlords tend to see people like this as unreliable and unstable. Keep that in mind for motivation on your next stellar rental application.
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