Brief Introduction About Month to Month Room Rental Agreement
A month to month room rental agreement is a contract that is created when the owner of the property rents it out to a person on a monthly basis. This agreement allows the owner and the renter more flexibility as compared to a year-long lease. The agreement contains details about the lease, the obligations of both parties, and various other important aspects of the transaction.
This agreement is a fairly simple one, and it lays down rules as to how the property shall be used and the various duties of the renter, such as timely payment of rent, maintenance of the property, etc. This agreement must be used by every person who is renting a property on a month-to-month basis. Either party can terminate it by giving a notice of one month.
Who Takes the Month to Month Room Rental Agreement
The people involved in a month to month room rental agreement are the person who is renting out the property, i.e., the owner of the property, or the landlord, and the person to whom it is rented, i.e., the renter or the tenant.
Purpose of a Month to Month Room Rental Agreement
The purpose of a room rental agreement month-to-month is to lay down the various aspects that are essential to the lease. A rent agreement is required in every situation, whether it is a year-long lease or a monthly lease. This is because a written agreement will protect the interests of both parties if there is any breach of obligation by either party. The duties of both parties are clearly laid down in the contract, and they must adhere to it. If the renter causes any damage to the property or commits any wrongdoing, the landlord will have certain remedies in place. This agreement makes sure that the lease is executed in a seamless manner.
Contents of a Month to Month Room Rental Agreement
A month to month room rental agreement contains important clauses as to how the lease will operate. Firstly, the contract must contain the rent amount and the security deposit amount. It must lay down the date by which the rent must be paid every month. The contract should mention whether the lease will be automatically renewed every month or not.
The rules regarding how the property is to be used and how it shall be maintained must be clearly stated. Any applicable rules, such as ‘no pets’ or ‘no smoking,’ should be included.
The agreement must also provide for remedies in case the tenant does not pay the rent on time, or in case the tenant does not fulfill any of the duties required of him. The instances in which the agreement may be terminated must be included. It must mention the notice period, which has to be served by the parties while terminating the agreement.
How to Draft a Month to Month Room Rental Agreement?
The following are the steps to follow while drafting a simple month to month room rental agreement:
- This agreement is quite easy to draft. It must include all the relevant clauses that are essential to a lease.
- It should be drafted, keeping in mind all the obligations of the tenant and the house rules.
- The property and both parties should be clearly identified in the contract.
- It should lay down what activities will not be accepted in the property.
- The agreement should be reviewed and signed by both parties.
Negotiation Strategy
- The parties make sure that the agreement clearly encapsulates their mutual understanding.
- Negotiations in a lease agreement will mostly revolve around the rent and security deposit amount.
Benefits and Drawbacks of a Month to Month Room Rental Agreement
The following are the benefits and drawbacks of having a month-to-month room rental agreement:
- This agreement provides flexibility to both parties as they are not bound by a year-long lease.
- The contract contains a proof of the terms under which the house was leased to the tenant. This can help to prove a breach of contract.
- It protects the rights and interests of both parties by providing remedies for breach of the agreement.
- If this agreement was not in place, there would be very few remedies available to the owner, if the tenant breached any clause of the agreement.
What Happens in Case of Violation?
A month to month room rental agreement will always contain a provision for breach of the agreement. If the tenant does not comply with the stipulations in the contract, the landlord has the right to terminate the agreement. If there is any damage caused to the property or any consumption of drugs in the house, the landlord can have the tenant immediately evicted(1). He can also forfeit the amount of security deposit(2).
If the tenant does not vacate the property when the lease has come to an end, he may be liable to pay the penalty for each extra day.
In conclusion, this month to month room rental agreement is beneficial whenever a lease is created. A written agreement goes a long way in preventing any discord between the concerned parties. It is a good idea to write down all the particulars in an agreement as this brings clarity and transparency to the entire transaction.