The advantages and disadvantages of monthly rental agreements and what should be done
There can be several forms of agreement types and a monthly rental agreement is one of the most common of the lot. In this kind of an agreement both the parties enter into a monthly contract and after every thirty days the agreement is renewed again, if there is so notice of change from either sides. These are the month to month agreement platforms. The other way is not to provide any specific time period to the tenant and let him continue residence until the owner feels otherwise.
Now if you are a tenant there are certain rules that should definitely be kept in mind and for instance the rent control laws and the tenant laws must be clear to each individual who are in such situations. In several states there are laws that bar owners from increasing their rent amount or charge extra for late payments. These are certain rules that the tenants should be well aware of.
Who does it favour?
Usually a monthly rental agreement mostly goes in favour of the landowners as they can change the house agreement rules as and when he likes. This makes it a pretty uncertain situation for the tenants but in situations where the tenant prefers moving from one place to the other, then it is favourable to them. Nonetheless such agreements are quite flexible and provide an opportunity to both the parties to change or modify and rules according to mutual benefits.
Most state laws have different guidelines to follow when it comes to month to month rental agreements and thus while preparing one, make sure that the agreement is in accordance to the specific laws.