For some people, a monthly contract is more manageable. With the right rental lease agreement PDF, you can move from fixed-term arrangements to something that better fits your situation. In this article, we’ll show you how to negotiate a monthly lease with your landlord.
Fixed-Term vs. Month-To-Month Lease
A fixed-term lease is one that lasts for a specific duration, usually a year. Month-to-month leases instead renew each month. Here’s a quick rundown of each format:
Fixed-Term
These contracts represent a long-term commitment. You also won’t have to worry about the rent going up until after the lease ends.
While you won’t face sudden displacement, you also can’t move on short notice. Terminating the lease early means harsh penalties; significant life changes will have to wait.
Month-To-Month
A monthly lease gives much more flexibility. You can move out on much shorter notice if you get a new job or a better offer.
However, the landlord could raise your rent a lot sooner. They might even end the lease without giving you time to find another home.
Asking For a New Lease
If you’re already on a fixed-term lease, you’ll need to talk to your landlord. You should do this at least 1-2 months before your fixed contract ends. If they’re definitely against this, you both have time to find alternative arrangements.
Not every landlord is comfortable with monthly tenancies. Fixed terms are usually the norm due to the security they offer. Finding a new tenant can be a lot of work. A year-long contract means they have a guaranteed renter for longer.
If the landlord is reluctant, you may have to give several concessions. You should approach the topic using their preferred contact method. However, in-person discussions are usually the most fruitful. In the conversation, explain why month-to-month would fit you better.
Your landlord needs reassurance that they won’t have to suddenly find a new tenant. It helps to informally commit to staying a certain number of months. They’ll then know you won’t move out too suddenly.
Points of Negotiation When Discussing a Monthly Lease
In some cases, your landlord will agree right away. They might also enjoy the flexibility of the monthly contract. However, you’ll need to negotiate if you aren’t so lucky. Here are seven ways to make the arrangement more attractive:
- Higher rent: Offer to pay higher rent; this can offset the risks the landlord will be facing.
- Notice period: Make it clear that you’ll give as much notice as possible before leaving.
- Duration: If you know you’ll be staying at the home for at least a few months, mention it.
- Payment plan: You can also negotiate a different payment plan that fits both schedules.
- Rent raises: Note that monthly leases give the landlord more control over rent prices.
- New deposit: Suggest a new (possibly higher) deposit to go alongside a new contract.
- Flexibility: Offer to re-establish a fixed-term arrangement once your situation stabilizes.
Make sure you don’t agree to an untenable situation. If you do bring up the landlord’s ability to raise prices, ask for a grace period. They shouldn’t up your rent to an unreasonable degree.
Your New Lease Agreement
Make sure the new lease is still fair and contains everything from the previous one. It might help to compare the new document with online lease templates. In fact, if you’re broaching the topic, you could draft a monthly contract using these templates.
Whoever puts together the new lease should clearly outline (and explain) every change. It might be best to go over it together. The new contract is also an opportunity to make the arrangement more equitable or practical for every party.
When you’re negotiating, ensure you get every point in writing. By the time the contract is ready, you might forget a key concession from the landlord. Only sign the document once you know it meets your needs and fits your state’s tenant rights.
Returning to a Fixed-Term Lease
A monthly contract might only be a temporary arrangement. For example, if you have an unclear job situation and may need to move suddenly. Once things get more secure, you could return to a longer fixed-term contract.
However, there’s no guarantee that the landlord will agree to another significant change. They might enjoy the freedom of being able to end the contract on relatively short notice. If you eventually aim to return to a long-term lease, bring this up during negotiations.
A monthly lease doesn’t have to be forever, but it gives plenty of flexibility. Regardless, you need a contract that fits your current situation. If that eventually becomes a fixed-term one again, you can address this.
Final Thoughts
Turning your rental contract into a monthly lease begins with talking to your landlord. However, it might require some concessions along the way. With a strong lease template, you’ll always have terms that work in your favor.