An Ongoing Lease Agreement: What You Need to Know
As a renter, it’s important to understand the terms and conditions of your lease agreement. One type of lease that you may encounter is an ongoing lease agreement, also known as a month-to-month lease. This type of lease offers both advantages and disadvantages, and it’s important to know what you’re getting into before signing on the dotted line.
What is an Ongoing Lease Agreement?
An ongoing lease agreement is a type of lease that automatically renews each month until either the tenant or landlord decides to terminate the lease. This type of lease can be beneficial for renters who may only need a temporary living arrangement or who want more flexibility in their housing situation.
Advantages of an Ongoing Lease Agreement
Flexibility – An ongoing lease agreement allows tenants to move out without the pressure of having to fulfill a long-term lease. This can be particularly helpful for renters who are unsure of how long they will need to stay in one location.
Lower upfront costs – Since ongoing lease agreements are usually shorter than traditional leases, tenants may not be required to pay as much upfront in terms of security deposits or first-month’s rent.
Disadvantages of an Ongoing Lease Agreement
Rent Increases – With an ongoing lease agreement, landlords may have more freedom to increase rent rates. This means that renters could end up paying more for their living accommodations without much notice.
Lack of stability – With a month-to-month lease, there is no guarantee that the tenant will be able to stay in their current home indefinitely. If the landlord decides to terminate the lease, the tenant will have to find a new place to live.
Less time to plan – In a traditional lease, renters typically know how long they will be living in their home. With a month-to-month lease, renters may have less time to make plans for their housing situation. This can be particularly difficult for renters with families or other long-term commitments.
In conclusion, an ongoing lease agreement can be a good choice for some renters. It offers flexibility and lower upfront costs, but also comes with the risk of rent increases and lack of stability. It’s important to carefully consider your housing needs before signing an ongoing lease agreement. If you’re unsure whether this type of lease is right for you, it’s a good idea to consult with a professional.