How Does a Month-to-Month Lease Work for Office Spaces?

If you're a startup, freelancer, or small business owner, a month-to-month lease could be your ideal solution for flexible office space.  We prepared a short guide about month to month lease for you to help you while deciding for your next step. Hope this content will led you to decide for the most accurate option.

What is a Month-to-Month Lease?

A month-to-month rental agreement is a type of lease whereby it is renewed every month. The benefit of the month to month lease is allowing you to continue or end the lease at their own will at the end of each month. This is important because there can be challenges for startups, small businesses and they can manage their budget more smoothly. Unlike traditional leases, which may bind a tenant to the premises for some long period, month-to-month leases are entered into, making it very adaptable and suitable for businesses.

Advantages of Month-to-Month Lease

Flexibility

The flexibility of the month to month office lease is one major advantage of such an agreement. This type of agreement businesses could change their office space if their cash flow is good or the team grows. You can change your office if your team is growing. This is why Unita offers month to month leases for its members. With this type of agreement, one can increase or reduce office space as the business grows or diminishes, respectively, without being tied to a long-term commitment.

Short-Term Commitment

If your business is going through some transitional stage or perhaps you are not ready for a long-term lease, then a month-to-month lease can let you test the waters with minimal potential financial risk. This short-term commitment is excellent for businesses in flux.

Easy Termination

One great advantage of the month-to-month lease is the ease of termination. If the space no longer serves your needs, simple notice—usually 30 days—is required, and you may move out of the property without a penalty.

How Does a Month-to-Month Lease Work?

1. Looking for the Right Space

Begin by looking around for available office spaces on a month-to-month tenancy basis. Look out for locations most conducive to your business: near your clients, available facilities, and general ambience.

2. Scanning the Lease Agreement

After finding a suitable space, go through the lease agreement. Look out for basic terms such as the amount of rent payable, when, renewal conditions, notice periods if the tenancy has to be terminated, etc.

3. Negotiating Terms

Don't be afraid to negotiate the lease to an extent that it favors you. This could mean a reduced rent, extra services provided, or even a flexible notice period.

4. Signing the Lease

Once the terms have been negotiated, sign the lease. Be sure to keep a copy and be very clear on what you are expected to do as a tenant.

5. Setting Up Your Office

Move in, set up your new office space to reflect your branding and the operations of your business, making sure that your team is comfortable and has what they need to be productive.

6. Lease Management

Keep track of the monthly payments; also, problems related to maintenance are going to arise. Check periodically if this space indeed serves your needs, and make adjustments accordingly.

Common Questions about Month-to-Month Leases

1. What is the notice to terminate a lease?

Mostly, a month-to-month lease requires 30 days' notice to terminate. The time varies, and thus it will be determined by the lease agreement.

2. Can a landlord raise your rent?

Yes, landlords are allowed to increase your rent, but most of the time, they have to provide you with some advance notice. How far in advance and how many times a year they can increase your rent once, twice, or more times a year will be laid down in your lease.

3. What if I miss a rent payment?

Missing a rent payment can bring penalties or even termination of the lease. If you are aware in advance of possible problems making a payment, be sure to contact your landlord.

4. Are utilities included in the rent?

It depends on the lease. Some month-to-month leases include utilities; some require you to pay for them separately. You will have to look over your lease.