LandlordKit

Lease Renewal vs. Going Month-to-Month

The trade-offs between renewing a fixed term and letting a tenancy roll month-to-month.

What happens when a lease ends

When a fixed-term lease expires, you generally have three choices: sign a new fixed-term lease, let the tenancy convert to month-to-month, or end the tenancy. In most states, if neither side acts, the tenancy automatically becomes month-to-month on the same terms.

The trade-off

A new fixed term gives you rent stability and a known occupancy period — good when you have a reliable tenant and a soft rental market. Month-to-month gives you flexibility to raise rent or regain the unit on short notice, but the tenant has the same flexibility to leave, raising your vacancy risk.

Many landlords offer a renewal first and let it roll month-to-month only if the tenant prefers it — often with a small premium to offset the added turnover risk.

Send the offer early

Reach out 60–90 days before the lease ends so the tenant has time to decide and you have time to market the unit if they leave. The lease renewal letter generator produces a clean offer in seconds; if you're also raising the rent, check your state's notice period first.

Not legal advice. LandlordKit provides general informational tools, not legal advice. Landlord-tenant laws change and vary by city and county. Verify the cited statute and consult a licensed attorney before acting on any result.