What is a Month-to-Month Rental Agreement?
Just as the name implies, a month-to-month rental agreement has a term of one month. In Florida, the month is deemed the period of time between rent payments. For example, if rent is due on the first of every month, then a tenant is month-to-month if his or her lease makes no specification of a longer term and the tenant has been residing in the unit in the same manner for at least a month.
The most common month-to-month set up in Florida is when a lease expires or is terminated and the tenant continues to stay in the apartment in the same manner and for the same cost as before. In this case, the month-to-month relationship is really just the lease, but without an expiration date. Note, however, that tenants cannot stay indefinitely. If the parties have agreed to a specific rent payment period (i.e. the first of the month), short of an agreement to the contrary, the tenant must give notice of the intention to vacate no less than seven (7) days before the 1st of the month. See Section 83.595, Florida Statutes, for more information regarding termination notice requirements by the tenant in a month-to-month agreement. The landlord must give the tenant no less than 15 days notice. See Section 83.579, Florida Statutes.
A landlord would use a month-to-month agreement to retain the possibility of terminating the agreement on short notice, rather than committing to a long-term lease with a long-term expiration and a short termination window. A shortterm agreement is also useful as a means of forcing the tenant to vacate in a timely fashion upon breach of any term that is a cause for termination or eviction in Florida . For example, if a tenant fails to pay rent in a timely manner, a Florida landlord can initiate termination of the lease. The Florida Residential Landlord and Tenant Act requires that a landlord give a three-day notice to pay or vacate pursuant to Section 83.56, Florida Statutes. In most leases, there is a provision that allows the landlord to terminate the lease if there is a failure to pay rent and to continue the rental relationship if the rent is paid. A month-to-month rental agreement would allow the landlord to shorten this time period even more. The three day notice under Section 83.56, Florida Statutes, shortens the notice period from fourteen (14) days to only three (3). Under Section 83.56(3), Florida Statutes, the landlord is not required to terminate or continue the lease after three (3) and can simply terminate the lease pursuant to any provision in the lease agreement that allows for the same. A month-to-month rental agreement would allow the landlord to require the tenant to vacate in any time period given in the lease without the requirement to send a three day notice to pay or vacate. In most leases, the provision allowing for the landlord’s termination must be in writing. See Section 81.577., Florida Statutes, entitled "Write Your Own Lease," for more information. In some cases, the lease will require an additional fourteen (14) days and some may allow the landlord to immediately enter and take possession of the premises. A month-to-month rental agreement will give the landlord the ability to employ these terms of the lease in order to shorten the termination notice period to the extent allowed by law.
Benefits of Florida Month-to-Month Rental Agreements
Florida month-to-month rental agreements are arguably the most flexible of all rental agreements. A landlord has the right to terminate it with proper notice giving a tenant at least as much time as the rental payment period (which is typically one month) to leave the leased premises.
A month-to-month rental agreement also allows a tenant flexibility to end the lease quickly and conveniently if the tenant’s or landlord’s needs change.
Of course, there are advantages to a long-term lease. When new tenants approach a landlord about a six or twelve month rental term, landlords may be more inclined to charge higher rents because they want the guarantee of having all of the rental payments over the term of the lease.
However, long-term leases are more risky for both parties because there are various things that could happen in the future to alter the terms from what a tenant or landlord expected. For example:
•After moving in, tenants may discover a number of things about a premises that make it less than desirable (such as noisy neighbors, barking dogs, bad utilities, anything else).
•After moving in, tenants may lose their job and need to relocate back to be closer to their families.
In all of these situations, the tenant is stuck with having to pay rent and fulfill the lease obligations until the lease expires or the tenant is sued for specific performance.
In some cases, however, a tenant will be protected by the Florida residential landlord-tenant act, which allows a tenant to break a lease early if the tenant is a victim of domestic violence.
The point is that any of the circumstances listed above are examples of common occurrences of situations that could happen to a tenant on a short-term basis but would be harder to extricate from if the landlord and tenant made a long-term agreement. This flexibility is strong enough to weigh heavily on the scale in favor of month-to-month rental agreements.
Rights and Obligations of Tenants & Landlords
The Florida Residential Landlord and Tenant Act (FL Stat. Chapter 83) governs month-to-month rental agreements in Florida. Normally there are no written leases that govern month-to-month agreements. Month-to-month renters have the same rights and obligations as govern other tenants in Florida. To learn more about what a tenant can do if they believe their landlord has violated the Agreement, or are seeking possible defenses for being evicted, contact a landlord-tenant attorney to discuss potential defenses. For instance, under state law, landlords and tenants have the following responsibilities and rights. The landlord shall: (a).Comply with the requirements of applicable building, housing, and health codes; or (b).In the absence of applicable building, housing, and health codes, maintain the premises in a condition suited to human habitation. (c).Keep all common areas of the premises in a clean and safe condition. (d).Make all repairs and do whatever is necessary to put and keep the premises in a condition fit for human habitation. (e).Maintain roofs, windows, screens, doors, floors, steps, porches, chandeliers, and other interior landlord fixtures and appliances in reasonable repair. (f).Provide and maintain facilities for running water and reasonable amounts of hot water and reasonable heat. (g).Maintain in good and safe working order electrical, plumbing, sanitary, heating, ventilating, air-conditioning, and other facilities and appliances, including elevators, if any. (h).Provide trash removal and extermination except if the single-family home or multifamily dwelling unit is smaller than four units and the rental agreement does not provide otherwise. (i).Supply running water when health standards require the continuance of running water supplied through pipes. (j).Where there is a rust problem in the water or the water supply is contaminated or fails to meet local standards, supply potable water through taps at one or more locations on the premises where water is obtainable. (2) The duties of a landlord under this section may not be waived.
Ending a Florida Month-to-Month Rental Agreement
Month-to-month rental agreements are an exception to the rule in Florida law regarding lease terms. Typically, lease terms must be in writing and for a least a year, which automatically offsets some risks for landlords in particular. A month-to-month rental agreement is usually entered into when a tenant moves into a property without having signed a lease. The landlord may not not decide to go through the process of a rather lengthy lease agreement process for one month’s stay, for example, which is why a month-to-month arrangement exists.
All things being equal, there is very little legal difference between a lease agreement and a month-to-month rental agreement. However, the two documents will have different termination requirements. Because lease agreements provide for a committal for a certain length of time, early termination penalties, prorations, and so forth come into play that would not be present in a month-to-month rental agreement. Logistically, a month-to-month rental agreement does not require any additional steps to terminate than a regular lease agreement would. The only task involved in a termination of a month-to-month rental agreement is that every tenant needs to be given a written notification stating the date that the rental period ends. Florida law requires that this notice be given at least 15 days prior to the end of the rental period. The notice may be given by the landlord or by the tenant. Because the law tends to favor the tenant more, they can provide notice of the termination to a month-to-month rental agreement rather than to the landlord. Tenants should always keep their written notifications for the termination of a month-to-month rental agreement as confirmation of the end of the contract. This written termination notice may be sent in the mail or sent by email.
Typical Provisions in Florida Month-to-Month Rental Agreements
In a Florida month-to-month rental agreement, it is common for the contract to include rent payment details. The terms usually specify when and how to pay the rent. Perhaps the lease lists the exact day of the month it is due, and whether by check, ACH, or electronic funds transfer. With the rise of rental payment online platforms, renters are more likely to see this clause, which can also legally limit where and how the tenant’s rental payment is made. For example, if the rent is not paid in the prescribed manner, a Florida landlord may be able to issue the Florida 15 Day Notice to Pay Rent or Quit.
Next, the rental agreement often lists what the security deposit will be. A Florida homeowner must comply with Florida Statute 83.49, which addresses the refund of a tenant’s security deposit. The statute specifies that any Florida landlord who receives a security deposit in excess of $50 or any advance rent in excess of the amount of one month’s rent shall, within 30 days after receiving the deposit, give the tenant written notice of the manner in which such security has been invested. Further, the Florida landlord must maintain a written statement of any items included in the deposit that are for items not returned (like lost keys) or any items that are withheld as permitted under 83.49.
A separate section of the rental agreement will list what maintenance responsibilities each party has. This is an extremely important contract clause to address , because disputes arise when landlords assume that a tenant will take care of property damage that they are not legally responsible for. For instance, if a tenant leaves his/her front door open, allowing someone entry into the home, and the house is ultimately burglarized, a court may rule that the tenant was negligent, allowing the landlord to keep the tenant’s security deposit to cover the loss.
Florida residential property law places much of the burden of maintenance on landlords. For residential landlords, the most important part to remember is that if the landlord forgoes his or her responsibility to make repairs, these issues will not legally allow the landlord to break the lease or evict the tenant. A portion of Florida Statutes 83.51 also puts the burden on the landlord to provide running water, reasonable amounts of hot water, and reasonable heat.
As a tip, always make sure to keep lines of communication open with your tenant, so that duties of maintenance can be performed as soon as possible, and litigating a Florida eviction does not become necessary.
A Florida month-to-month rental agreement will also include how much notice each party must give the other before cancelling the contract. That is, notice requirements will govern the time provided to the tenant to move out and how soon a landlord may cancel the agreement.
Best Practice Suggestions for Florida Month-to-Month Rental Agreements
When it comes to negotiating lease terms, especially for a monthly rental agreement, a little forethought can go a long way. Here are some tips to keep in mind.
Keep in touch
It’s hard to negotiate effectively with a property owner or manager you haven’t communicated with, so introducing yourself and developing a rapport with them from the outset can be a good long-term strategy. If you haven’t previously leased an apartment in Florida, expect that landlords in the Sunshine State may be more legally inclined in terms of putting everything in writing than landlords in other parts of the country.
Don’t be afraid to ask questions
While you may assume that a month-to-month lease means that all terms of the tenancy are negotiable, in fact, some landlords may be more flexible about lease terms than they are willing to let on. To this end, don’t hesitate to ask about commonly negotiated terms such as the return of a security deposit, utilities or entrance or exit clauses.
Look for common ground with the landlord
People generally have a range of fear when it comes to monthly rental agreements, so if you’re working with a property owner who is either cautious or apprehensive, you might try to make an effort to see things from their point of view. Try approaching them in terms of what’s going to be best for them:
"I’d like to stay here for at least six months, so maybe we could move to a lease then?"
"I want to abide by the terms of the lease — I don’t want to leave you in the lurch."
"I’ll make sure to give you 30 days notice."
Remain flexible and patient
The rental market in some parts of Florida is so hot that a landlord may have leverage over you in discussions regarding the terms of a month-to-month lease. Also, Florida tenants have rights that owners cannot violate and vice versa. Finally, be aware that there are limits to lease negotiations and that sometimes what won’t work for you now may be suitable for you later.
Legal Issues for Florida Tenants & Landlords
While Florida law governs the overall framework for month-to-month rental agreements, local ordinances can add another layer of complexity. Some counties and municipalities may have additional regulations on security deposits, notice periods, and the disbursement of rental proceeds from party community association accounts. Relying solely on your own legal counsel is ill advised. To protect yourself, you should know what other requirements may exist in your local jurisdiction.
Of equal importance are the rules and regulations established by the Association. Like condominium and cooperation boards, community associations ("HOA Boards"), in the context of HOAs, have the legal right to regulate leasing within their communities in their governing documents.
In many instances, these rules require prospective tenants and their tenants to submit rental applications to HOA Boards for approval prior to moving in. Rental applications often ask the prospective tenant to disclose the names of all of their guests and co-habitants, including pets, and reserve the right for the HOA Board to approve such individuals. In some instances, approval is conditioned upon a fee being paid to the corporate trustee managing the party’s community association account. Since the purpose of these applications can be to vet prospective tenants and allow for the association to determine who will be permitted to reside in the community, such applications usually imposes no obligation to approve a potential tenant, and require that the tenant must ultimately be approved by the party community association board of directors.
While associations have authority to exercise faith and fair dealing in the context of approval of rental applications , including requiring a certain degree of vetting, they do not have carte blanche to treat potential tenants or landlords arbitrarily or discriminatorily. For instance, under the federal Fair Housing Act, which applies to condominiums and HOAs alike, an association cannot discriminate against a tenant based on race, color, national origin, religion, sex, familial status and disability, or retaliate against an owner for exercising his or her rights under the act. In leasing contexts, the FHAA only applies to an owner or lessor who "makes a dwelling available for rent." 24 C.F.R. § 100.10(b). This excludes associations that are simply enforcing or conditioning a lease under governing documents from the approval process.
Landlords should also keep in mind that security deposits and advance rents require special treatment once they are received, so as to not violate the Nonad Valorem Assessment Lien Law (F.S. § 173.1-173.9) if the owner/lessor fails to hold them in a segregated account. If the owner/lessor ultimately fails to disburse their security deposits and/or advance rents pursuant to prevailing law and/or governing documents, the HOA Board has the right to have its community association lawyers put the owner/lessor and their next tenant on notice that the security deposits are required for the benefit of the association for outstanding assessments.
Taken together, these legal considerations can have a major impact on a potential renter or landlord considering a month-to-month rental agreement.
