What does it mean when a lease is "month-to-month"?

Prepare for the Oregon Property Management Test. Study with flashcards and multiple choice questions, each question includes hints and explanations. Get ready for your exam!

When a lease is described as "month-to-month," it signifies that the rental agreement is structured to automatically renew every month. This means that, at the end of each month, the lease continues for another month unless either the landlord or the tenant provides notice to terminate. This flexibility allows tenants to stay in the property without a long-term commitment, offering both parties the convenience to adjust living arrangements with relative ease.

The month-to-month lease arrangement contrasts with fixed-term leases, such as one-year leases, which lock tenants into their agreement for the entire term specified. Thus, the month-to-month structure is highly adaptable, reflecting the dynamic nature of rental agreements.

Additionally, while giving notice—such as a 30-day notice to terminate—is a common practice in month-to-month arrangements, it does not define the term itself. The automatic renewal aspect is the critical feature that distinguishes month-to-month leases from other types.

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