Month-to-Month vs. Fixed-Term Leases: Which is Better?

By PropsManager Team | Dec 17, 2025

Month-to-Month vs. Fixed-Term Leases: Which is Better?

Fixed-Term Lease (Usually 1 Year)

• Pros: Guaranteed income for a year. Less turnover work. Stability.
• Cons: Stuck with a bad tenant (unless you can evict). Harder to sell the property if the buyer wants to move in.

Month-to-Month Lease

• Pros: Flexibility. Easy to end the tenancy (usually 30 days notice) if you want to sell or renovate. Easy to get rid of a difficult tenant without a full eviction (in some states).
• Cons: Unpredictable income. Higher turnover costs.

The Hybrid Approach

Many landlords start with a 1-year lease and then convert to month-to-month automatically after the first year. This offers initial stability and long-term flexibility.

Conclusion

If you value peace of mind, go fixed-term. If you value control and flexibility, go month-to-month.