What is the difference between a lease and a rental agreement?

While some people use the terms "lease agreement" and "rental agreement" interchangeably, technically a lease agreement is used to create a fixed-term tenancy (terminating on a set date; for example after one year), while a rental agreement creates a periodic tenancy (automatically renews until one of the parties decides to terminate it; for example a month-to-month tenancy).

What needs to be included in a lease or rental agreement?

If you search around the Internet, you will find leases and rental agreements that vary widely in terms of length, thoroughness, and format. Every state has different laws as to what must be included. However, in general, the following items must be included: The name and address of all parties involved: For residential leases, the address for the tenants will normally be the address of the unit being occupied. The term of the agreement: Agreements may be for fixed terms, such as six months or one year, or they may be periodic, such as week to week or month to month. Rental payment terms: These terms include how often rent will be paid, the payment amount, where payments may be made, and the permitted payment methods. Deposits and fees: Deposits are normally refundable whereas fees are not. The agreement should state the circumstances when the landlord may make deductions from the deposit. Utilities and maintenance responsibilities: The agreement must be clear as to who is responsible for paying each utility and should explain the maintenance and repair obligations. Prohibited uses and activities: Tenants are prohibited from engaging in illegal activities on the premises. The agreement normally includes a laundry list of specific prohibitions. Termination: The manner of terminating the agreement differs depending on the type of tenancy, preferences of the parties, and state law requirements. Disclosures: Each state has specific disclosure requirements that must be met prior to signing the lease. Most states require landlords to disclose serious problems that impact the unit's habitability and local rent control rules. If you are ever in doubt, it is best to always disclose all relevant issues.

What is the difference between a fixed term and a month-to-month agreement?

A fixed-term lease is an agreement that has a fixed duration of a year or more depending on what is agreed upon between the landlord and tenant. A month-to-month lease agreement does not have a fixed term and only commits the landlord and tenant to a month at a time, subject to any notice requirements.

How is a month-to-month rental agreement ended?

The month-to-month rental agreement is structured so that the contract automatically renews each month until one of the parties gives a 30-day notice that they plan to end the lease. Upon the expiration of the 30-day notice, the agreement will come to an end

What is a residential rental agreement?

A residential rental agreement creates an agreement between a property landlord and one or more tenants that allows the tenants to occupy a residential property in exchange for payment. The agreement specifies the rights and obligations of all parties involved. A rental agreement, as opposed to a lease, normally does not have a fixed term. Rental agreements generally create what is known as a periodic tenancy. This type of tenancy goes on indefinitely until either party provides notice that it wishes to terminate the agreement.

Month-to-Month Residential Rental Agreement

Our month-to-month residential rental agreement is similar to our standard lease agreement but allows a tenant to rent property on a monthly basis with no set end date.

This can be helpful in situations where tenants or landlords cannot commit to long-term lease agreements. The extra flexibility provided by this structure usually means that the rental payment is also slightly higher.

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When to use a month-to-month residential rental agreement

You are a landlord or property manager that wants to rent a property
The tenant will rent the property on a periodic month-to-month basis
You want a rental agreement that protects you and your property from an irresponsible tenant

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Residential Lease Agreement

Rent your property for a fixed duration.

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Month-to-Month Rental Agreement

Rent your property on a month-to-month basis.

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How to create a month-to-month residential rental agreement in 3 steps

Gather Information

Begin by collecting basic information about the rental agreement, including landlord and tenant addresses and contact information, when the lease will begin, as well as rent and security deposit amounts. Also, determine at this point if any special work orders or repairs will be needed for the unit.

Answer Key Questions

We help you integrate the information you collected into an agreement adapted to your needs. As you complete our questionnaire, we inform you about your choices at each step and dynamically ask new questions based on your previous answers and the state involved.

Review and Sign

Always read your document thoroughly to ensure it contains everything you need and is free of errors. In any case, once you finish creating your document, you will be able to alter it as much as you like in Microsoft Word. However, if you do not need to make any changes, you can simply download the PDF version and have the parties sign the agreement.

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