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

When renting out rentals, the landlord has the option to do so either long-term or short-term. Long-term lease agreements usually runs anywhere from 6 months to a year. A short-term lease, on the other hand, runs on a month-to-month arrangement.

If you’re considering month-to-month leases, there are a couple of things you should know. This post will cover the pros and cons of using a month-to-month lease or rental agreement when renting our a rental unit.

Pros of Month-to-Month Leases

The following is breakdown of some of the benefits of month-to-month leases:

The End Date is Flexible

Long-term lease agreements runs for a specific period of time, typically a year. As such, you’ll be contractually tied to the renter for the entire year unless they break it early or violate the lease terms and you have them evicted.

A month-to-month lease agreement is different! To terminate the month-to-month lease, all you need to do is serve tenants a 30 days notice that you won’t be renewing their lease agreement.

More Control Over Who Rents Your Property

This is another advantage of having month-to-month leases over a long-term lease. Unlike in a long-term lease, the landlord won’t be stuck with difficult renters for a long period of time. The landlord can simply terminate their lease by serving them proper notice.

On the other hand, if a landlord rents to a great tenant, they can continue renewing their lease until they eventually choose to move out on their own.


A Great Way to Test the Waters

Are you just getting started in the world of real estate investing? If so, a month-to-month lease agreement can be a great option for you. It can enable you to test the waters of self-management without forcing you into a long-term commitment.

You Can Easily Make Changes to the Lease

With a long-term lease, you’ll only be able to make changes after the contractual lease period has ended. This can mean waiting for a whole year.

But with a month-to-month lease, you may be able to do so before every lease renewal. For example, if you want to raise the monthly rent, you can do so before the start of the next rent payment period provided you follow the correct legal procedure.

There is No Penalty for Breaking the Lease

As long as the landlord notifies the renter, there is generally no penalty for breaking a month-to-month lease. Typically, with a month-to-month lease term, it’s expected that either party---either the landlord or the resident---will break the lease at some point.

Cons of a Month-to-Month Lease

Here are some downsides associated with a month-to-month rental contract:

The End Date Is Uncertain

In some situations, knowing when a lease is coming to end can be beneficial. However, with a month-to-month lease, the landlord will have to deal with a lot of uncertainty.


It’s the goal of every landlord to want to rent to great tenants who pay rent on time, care for their rental units, and renew their leases. Having to find a new renter, however, can not only be stressful but also costly as well as you won't be generating rent to offset expenses.

You’ll Have to Work with Short Notices

If tenants notify you that they will be moving out at the end of the month, you’ll have 30 days to find a replacement renter. Generally, this time won’t be sufficient for you to re-lease the rental property.

Finding a renter is a multi-process involving:

  • Making your property rent-ready
  • Creating a captivating rental ad
  • Running a marketing campaign
  • Hosting open houses
  • Screening prospective tenants

Your Rental Income May Not be Stable

Having great renters that take their responsibilities seriously is always a win. However, keeping them temporarily will not provide landlords with a steady stream of rental income.

How Does a Month-to-Month Lease Agreement Work in Nevada?

A landlord and renter can enter into a month-to-month rental agreement by signing a written contractual agreement. Once the agreement is active, both the landlord and the renter obtain certain rights and responsibilities under the Nevada landlord-tenant laws.

How Much Notice do You have to Provide Your Nevada Renter to Terminate the Lease?

Any party in the lease can terminate a month-to-month lease by giving the other a 30-days written notice. There is an exception for renters aged at least 60 years or who have a disability, though. In which case, landlords must provide them with an additional 30-day extension.


There are also notice delivery requirements in the state of Nevada. When serving your tenant with a notice, you must deliver it in either of two ways: in person or by mail. For tenants, they must deliver the notification to you in person. They must also do so in
the presence of a witness.

Do You Need to Provide Your Tenant a Written Notice to Raise the Rent?

Yes! You must provide your renter a notice of at least 45 days before increasing their rent. The notice must be written.

How Can You Evict a Tenant on a Month-to-month Lease?

If a tenant refuses to move after the notice period ends, you can begin eviction proceedings against them. You must file a complaint in an appropriate court.

After notarization by the court’s clerk, a summons and complaint will be served on the tenant. This service task will be accomplished by a process server, such as a sheriff, deputy sheriff, or constable. A hearing will then be held, and the court will make its judgment.

If the judgment is in your favor, the court will issue you an Order for Removal. This will be the last notice for the tenant to leave the unit. If they don’t move out within the notice period, the sheriff will return and remove them.

Bottom Line

So, is a month-to-month lease better for landlords? There is no straightforward answer, you’ll need to examine both the pros and cons to see what works for you. If you are still not sure which way to go, Evolve Nevada can help! We’re a trusted property management company in Reno and Sparks Nevada.

Contact us today to learn about our full-service property management solutions!

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I could not be happier with my decision to engage Evolve Nevada to manage my rental property. They are a perfect mix of expertise and personal touch that makes the relationship constructive and worthwhile. I rely on Evolve Nevada not just for the mechanics of renting my home, but for trusted advice on best ways to proceed -- leveraging their experience -- that will benefit me long-term. I highly recommend Evolve Nevada for property management.

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