A month-to-month tenancy clause outlines a rental agreement where the tenancy automatically renews each month until either party provides a notice to terminate the arrangement. This type of tenancy offers flexibility for both the tenant and landlord, typically requiring a 30-day notice period for termination.
Month-to-Month Tenancy. Upon the expiration of the Suite 208 Expansion Premises Term (as defined in Section 5 of the Fifth Amendment) on May 31,2021, Landlord and Tenant agree to enter into a month-to-month tenancy (the “Month-to-Month Tenancy”) commencing on June 1, 2021 (the “Month-to-Month Tenancy Commencement Date”). The Month-to-Month Tenancy may be terminated by either party upon delivery of forty-five (45) days written notice to the other party (the “Termination Notice”). Notwithstanding anything to the contrary in the foregoing, the term of the Lease for the Suite 208 Premises shall end concurrently with the expiration of the Lease Term for the remainder of the Premises, i.e., Suites 500,502,505, 600 and 610, which is currently set to expire on June 30,2023, as set forth in Section 4 of the Sixth Amendment. All terms and conditions of the Lease will apply during the Month-to-Month Tenancy, except as otherwise set forth in this Amendment.
It is further understood and agreed that in the event the Commencement Date for Suite 550 has not occurred within 10 days from and after the Effective Date of this Amendment, Tenant shall have the right to continue to lease Suite 400 on a monthto-month tenancy on the same terms and conditions of the Lease, including base rent, except, notwithstanding anything contrary provided in Section 15.1 of the Lease, Landlord shall provide Tenant with 90 days’ prior written notice of any election to terminate such month-to-month tenancy, and Tenant shall provide Landlord with 30 days’ prior written notice of any election to terminate such month-to-month tenancy.
Continuation as Month-To-Month Tenancy after Expiration. On the expiration of the Lease term pursuant to subsection (a) above, the terms of this Lease will continue in the form of a month-to-month tenancy, except where prohibited by applicable law, regulation, or ordinance. The parties shall give notice and terminate the month-to-month tenancy within the time allowed by law.
Furthermore, Sublandlord’s acceptance of Rent from Subtenant when the Subtenant is holding over without express written consent does not convert Subtenant’s tenancy from a tenancy at sufferance to a month-to-month tenancy.
Provided Tenant has not vacated the Premises, and provided Tenant has not exercised any option to renew, or has not entered into a new Lease regarding the Premises, then if Tenant holds over after the Lease term, this Lease shall revert to a month-to-month agreement upon expiration of the lease term and a ninety (90) day notice by either party shall be required to terminate this said month-to-month tenancy. All other terms and conditions of the original Lease would remain in effect during this month-to-month tenancy.
At any time during a month-to-month tenancy Landlord may terminate the month-to-month Lease by serving Tenant with a written notice of termination. Upon termination, Tenant shall vacate the premises and deliver same unto Landlord on or before the expiration of the period of notice.
Holding Over. In the event Tenant remains in possession of all or any part of the Premises after the Expiration Date without a Renewal Term Amendment, then Tenant’s occupancy of the Premises shall be deemed a month-to-month tenancy at sufferance, subject to all terms and conditions of this Lease; except that Base Rent payable during such month- to-month tenancy shall be one hundred fifty percent (150%) of the Base Rent due and payable immediately prior to the Expiration Date. Such month-to-month tenancy may be terminated by either Party upon delivery of twenty-one (21) calendar days written notice. Notwithstanding anything to the contrary set forth herein, any holdover without Landlord’s consent shall be deemed an Event of Default entitling Landlord to exercise all rights and remedies set forth in Section 16 below.
Lessee shall quit and surrender the said Premises at the expiration or other termination hereof, in good order and condition, reasonable amount of wear and use excepted (damage by the elements expected). If Lessee shall remain in possession of the Premises after the expiration of Term or any extension thereof, Lessor may elect to treat Lessee as a month-to-month tenant. During such month-to-month tenancy, rent shall be payable at the same rate as that in effect during the last month of the preceding term, and the provisions of this Lease shall be applicable.
Month-to-month tenancy is a type of rental agreement in which the tenant rents from the landlord one month at a time. Unlike long-term leases, this arrangement automatically renews unless notice is given by either party to terminate it. This provides greater flexibility for both tenants and landlords, who are not locked into extended commitments.
When should I use month-to-month tenancy?
A month-to-month tenancy is ideal in several situations:
Short-term living needs: If you anticipate needing housing for a limited period, a month-to-month tenancy allows for easier transition.
Uncertainty in plans: If you’re uncertain about your future location or job situation, this arrangement allows for mobility without steep penalties.
Testing a new environment: If you want to try living in a new area before committing to a longer lease, a month-to-month lease is beneficial.
Property sale: For landlords preparing to sell a property, a month-to-month agreement provides more flexibility in coordinating the timing of the sale.
How do I write a month-to-month tenancy agreement?
Writing a month-to-month tenancy agreement involves several key elements to ensure clarity and legality:
Title & Date: Clear identification, such as “Month-to-Month Rental Agreement,” with the date of drafting.
Names & Contact Information: Full names and contact information of both the landlord and tenant.
Property Address: The full address of the rental property in question.
Rental Terms: Specify the monthly rent amount, due date, and acceptable forms of payment.
Security Deposit: Outline the amount of security deposit required and conditions for its return.
Termination Clause: Detail the notice period required by both tenant and landlord for termination, typically 30 days.
Occupancy: Specify who will occupy the rental unit.
Rules & Regulations: Include any property-specific rules, such as policies on pets, repairs, and alterations.
Signatures: Spaces for both landlord and tenant to sign and date the agreement.
Example:
This Month-to-Month Rental Agreement is made on [date] by and between [Landlord’s Name] and [Tenant’s Name]. The address of the rental property is [Property Address]. The monthly rent is $[Amount], payable on the [due date]. This agreement may be terminated by either party upon providing a 30-day written notice.
Which contracts typically contain month-to-month tenancy?
Contracts that typically involve month-to-month tenancy include:
Residential Lease Agreements: Often used when a fixed-term lease expires and both parties agree to move to a more flexible, ongoing arrangement.
Commercial Lease Agreements: Businesses might use this structure when they require flexibility due to fluctuating economic conditions or business needs.
Sublease Agreements: Subtenants often have month-to-month arrangements when the primary tenant seeks flexibility within the original lease term.
Vacation Rentals: Short-term rental platforms sometimes use variations of this tenancy to accommodate fluctuating durations of guests’ stays.
These contracts incorporate specific terms that allow both parties to have the necessary flexibility while maintaining obligations and responsibilities.
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