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What is a
Periodic Tenancy / Periodic Lease?
Month to Month Renting Guide
What
makes the
periodic tenancy or month to month lease so popular among landlords and
tenants? Is a month to month tenancy right for you and how do you
manage it? Have these important questions and more answered in our
complete month to month renting guide.
What is a
Periodic
Lease / Month to Month Tenancy?
A periodic
tenancy is a lease agreement signed between the landlord and
tenant that does have a fixed stated end date.
In
theory, a periodic lease definition can be a week to week, month to
month or even
year to year tenancy. In real life, month to month leases are so
overwhelmingly popular for residential properties that many landlords
and property managers use the terms periodic tenancy and month
to
month lease interchangeably.
If your written rental lease agreements do not clearly state an ending
date, it will be considered as month to month renting in most countries.
Or if you originally had a fixed term tenancy that expired and the
rental agreement is not
renewed, it automatically becomes a month to month lease if
you continue
accepting rent from your tenant (and both parties are agreeable to
staying on as landlord and tenant). Click
here for our complete fixed term tenancy / tenancy for years guide.
When is a
Periodic
Tenancy / Lease Right for You?
If
you are looking for more frequent income from your property, you can
consider a week to week lease. This way you will receive rent
from your tenants weekly instead of every month.
If
you are planning to sell off your rental property in the near future,
it's
also recommended that you have a week to week or month to month
renting. This way you will be able to sell off your real estate
quickly when the time is ripe.
Having a month to month lease can also be blessing if you are unlucky
enough to be stuck with a bad tenant.
You
will be able to remove him from your property painlessly by simply
handing
him a 30 day
notice to vacate (you may have to change it to 60 days for
some countries) instead of having to go through a costly and messy tenants eviction
lawsuit.
However if you are looking forward to having
a desirable tenant as your steady source of long term income,
it will
be a good idea to sign a fixed term lease with him. In that way,
you can also avoid the possible loss of rent and headache of having to
hunt for new tenants during times of vacancy.
How
do You End a Month to Month Periodic Tenancy?
Since
a periodic lease is designed to be ended
easily, the whole process will be quick and easy as long as you know
the right steps. In a nutshell, ending your week to week or month to
month renting involves giving the other party a written notice to quit
in advance.
If you are a landlord, you will generally have to hand your tenant a 30 day notice to vacate.
After your tenant receives it, he will have to pack up and leave your
rental property within 30 days of his last rent payment. In some areas,
you will have to inform your tenants 60 days in advance and change it
to a 60 day notice.
If you are a renter or tenant, you will hand your landlord a 30 day notice to
landlord. This notice has to be given at least 1 month before
you leave to give the landlord enough time to look for another renter.
While
it's possible for you to end a periodic lease by informing the other
party verbally in advance, we strongly recommend that you do it with a
written notice so that you will have backup proof just in case things
turn ugly.
Want to learn MORE practical
must-know facts on the right tenancy type for you?
Return from
this Periodic Tenancy / Month to Month Lease page to our Types
of Tenancy Agreements
guide
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