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Is a Month-to-Month Lease Better for Landlords?

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month-to-month lease

A lease agreement is a legal contract that both landlords and tenants sign when renting out a property. It is meant to explain the obligations of both parties as well as their rights. There are several types of leases that can be used depending on the duration of the leasing period. 

A month-to-month lease, as the name implies, is renewable each month until either party gives the notice to terminate the lease. It is mostly used to continue existing leases as both parties iron out new details. In other circumstances, it could be the type of lease that the parties had chosen from the beginning.

So what are the benefits and disadvantages of using a month-to-month lease? Continue reading to find out!

The Benefits of a Month-to-Month Lease 

Let’s look at the advantages of using a month-to-month lease!

Rent Adjustments

Rent adjustments are an important part of the leasing process. They allow landlords to adjust the rent charged, taking into consideration various locational factors and value drivers. Rent reviews can increase your rental income and earn that higher ROI that you have always been craving. 

With a month-to-month lease in place, you can perform your assessment of the neighborhood and use the information from your rent analysis to justify your rent increase. 

adjusting rent prices

You should know that property is one of the most regulated sectors of our economy. Before you raise the rent you must ensure that you provide your tenants with the proper notice 15 days prior to raising it.

While the state of Idaho does not currently have rent increase limits you, as the landlord, must always stay informed of the state and federal rental laws as there are subject to change. 

For sound and professional advice for your Boise investment, contact a property management company


It is recommended that you thoroughly vet the tenant during the tenant screening process. You should know whether they intend to plant roots in the area or if they are just passing by. If the tenant’s duration in the area is unpredictable, the use of a month-to-month lease offers flexibility and also allows you to accommodate the tenant. 

For new landlords in the Boise area, it’s recommended that you use month-to-month rental agreements over standard leases. This allows you to iron out the kinks of property renting. With such an agreement in place, you’ll be able to find out what works and what does not.

Breaking the Lease Without Any Penalty

Standard lease agreements have a defined start and end date that define the tenant in occupation of the unit/ property for that duration. If the landlord breaks the lease without any justifiable cause, he or she will face penalties. This, however, is not the case with a month-to-month lease. 

A month-to-month tenancy can be broken by either party so long as a month’s notice is provided. 

providing written notice

High-Quality Tenants

A high-quality tenant can be defined as one who pays their rent on time, relates well with other neighbors, and can maintain the property in a reasonable manner. To find such a tenant it’s important to conduct a tenant screening that adhered to all Fair Housing Laws

With a month-to-month lease, you can assess the qualities and character of a tenant. Once you are satisfied with their conduct, you can offer a standard lease agreement that offers more consistency and permanency for you as the landlord. 

The Disadvantages of a month-to-month lease

Now, let’s look at the disadvantages of using a month-to-month lease: 


Property is a great investment in that it offers investors, in this case, landlords, predictable income streams. Month-to-month leases have a significant amount of uncertainty attached to them due to their flexible end date. 

You may have built your plans around next month’s rental income, only to receive a notice from your tenant that they plan on terminating the lease. It is recommended that you morph a month-to-month lease into a standard one once you have identified a possible quality tenant and come to an agreement that works for both parties. 

planning investments

Difficulty Planning for the Future

As previously, month-to-month leases can be an unstable source of rental income. With such instability, concrete plans cannot be made to meet these financial goals. 

Finding New Tenants 

As a landlord, you should acknowledge that although you want to have tenants in your property, not every prospective tenant deserves to rent out your space. You need to have a comprehensive tenant screening process in place to help you choose the best tenant possible.

With only 30 days’ notice, the pressure to select a tenant can be overwhelming. It can also lead to periods of vacancy which can be costly for Boise, ID property owners. 


Managing your property consists of more than just the collection of rent and ensuring that your property is in tip-top condition. A landlord needs to have in-depth knowledge of leasing and rental laws to guarantee that their investment is protected. 

Consider partnering with the experienced and reputable property company Realty Management Associates. Our comprehensive services are offered by a professional staff with a stellar reputation. With us handling your property, you can rest assured that your investment is in safe hands.