Rental Agreement Rolling Contract: A Guide for Landlords and Tenants

A rental agreement is a legally binding contract between a landlord and a tenant that outlines the terms and conditions of a rental. One type of rental agreement that has become increasingly popular in recent years is the rolling contract.

A rolling contract, also known as a periodic tenancy or month-to-month tenancy, is a rental agreement that automatically renews at the end of each rental period until either the landlord or tenant gives notice to terminate the agreement. Unlike a fixed-term tenancy, which has a specific end date, a rolling contract continues on a rolling basis until one party decides to end it.

The benefits of a rolling contract for landlords and tenants

One of the main benefits of a rolling contract for landlords is the flexibility it offers. With a rolling contract, a landlord can adjust the rent or change the terms of the agreement at the end of each rental period, which can be beneficial if the local rental market has changed.

For tenants, a rolling contract offers more flexibility than a fixed-term lease. If they need to move out before the end of the rental period, they can do so without incurring penalties or breaking the lease. Additionally, a rolling contract allows tenants to test out a rental property before committing to a longer-term lease.

How to create a rental agreement rolling contract

Creating a rental agreement rolling contract is similar to creating a fixed-term lease agreement, with a few key differences. Here are the steps to follow:

1. Determine the length of the rental period – Typically, a rolling contract is month-to-month, but it can be any length of time agreed upon by the landlord and tenant.

2. Determine the rent amount – The rent amount should be agreed upon by both parties, and the landlord should include any late fees or penalties for missed payments in the agreement.

3. Set the start date – The agreement should specify the start date of the rental period.

4. Include a termination clause – The rental agreement should include a notice period for terminating the agreement. The notice period should be agreed upon by both parties and is usually 30 days.

5. Outline the responsibilities of the landlord and tenant – The rental agreement should clearly outline the responsibilities of both the landlord and tenant, including who is responsible for maintenance and repairs.

6. Include any additional terms or conditions – The rental agreement may include additional terms or conditions that are specific to the rental property or the landlord`s requirements.

Final thoughts

A rental agreement rolling contract can be a beneficial option for landlords and tenants who want more flexibility than a fixed-term lease. However, it`s essential to have a clear understanding of the terms and conditions of the agreement before signing. Consult with a legal professional if you have any questions or concerns about creating a rental agreement rolling contract.