Address newsletter
Get the latest news on buying, selling, renting, home design, and more.
Why month-to-month leases can be ‘ticking time bombs’
Experts weigh in on the pros and cons of entering into such agreements.
I started renting in Boston a little over a year ago. My journey actually began because of an exciting moment in my early journalism career: I began my six month co-op (full time internship) at The Boston Globe this month, which meant I could no longer live in campus housing at my college, so I sublet a room in East Boston until I could sign a lease with my friend in the North End.
We were anxiously pouring over apartment listings, trying to find options in our budget that were also available to start renting in May. My roommate found a two-bedroom apartment in a part of the North End we liked, and he contacted the listing agent. We thought it was perfect — as perfect as an affordable apartment in your 20s can be. Unfortunately, it turned out to be the start of a deeply stressful situation that I’m reframing as a learning opportunity for other young renters.
Advertisement:
When considering the lease, we told the agent we would need the apartment from May 2023 through May 2024. The agent spoke with the landlord and said we could enter a lease from May through December 2023 and shift to tenancy at will — meaning the landlord or tenant can decide to end the agreement at any time — for the remainder of the time. We were confused about why a shift to month to month was necessary. The realtor said the last tenants were a nightmare, so the landlord was apprehensive. But we were assured that everything would be fine.
Then 30 days before the end of the year, we were given notice that we would need to find a new place to live, only nine days after our landlord double-checked to make sure we were staying through May. We quickly learned that everyone in our building was given the same notice, so the landlord could begin renovating all of the units. With no other option, my roommate and I rushed to find new apartments and move our things into storage units during finals week because of a somewhat naive decision on our part.
Advertisement:
I spoke with two Boston-based real estate agents to understand more about tenancy at will and when this type of agreement can be helpful versus harmful.
More on renting
Realtor Patrick Brusil explained that month-to-month renting can be beneficial if you are moving to a new city and want to test out different neighborhoods or if you are a homeowner and need a place to live in between selling your old place and buying a new one.
But for long-term renters, Brusil said, the situation becomes a “ticking time bomb.”
“Your landlord is most likely going to give you notice that either the rent’s gonna go up dramatically, or they’re going to be selling the building. Under either of those situations, your costs are going to increase dramatically whether the rent just goes up or you have to be out of there, covering first [month], last [month], [a] security [deposit], maybe a broker’s fee for a new apartment where the rent is most likely higher,” he said. “And given the shortage of inventory for sale right now, particularly this time of year, it can be really hard to find a new place even if financially someone could bear that.”
Advertisement:
In most cases, you should enter a 12-month lease, real estate agent Nicole Yoshikane recommended. If renters encounter a situation in which they need to break the lease, she said, it can usually be resolved.
“If you’ve proven yourself to be a good tenant, most landlords will work with you. I’ve had clients who have gone through breakups, or life happens and their job relocates them to another city, and they need to break their lease, and as long as we can get it re-rented, there’s really no damage to the landlord,” Yoshikane said. “If you need to get out early, you can cross that bridge when you get there.”
When signing onto a lease or agreeing to tenancy at will, it is important to ask your realtor the right questions. Brusil suggested inquiring about the realtor’s previous experience with the landlord, how long the landlord has owned the building, and whether or not the realtor thinks the monthly cost is reasonable.
If you are a first-time renter or looking at apartments in a new area, Brusil recommended asking friends and coworkers for real estate agent referrals. He said it can be helpful to vet agents by checking with the people you trust.
Advertisement:
Yoshikane said the most common mistake she sees young renters make is trusting verbal agreements with realtors or landlords. She explained that renters should never assume what they discussed is a part of their lease agreement. They should always carefully read through their rental documents to make sure they understand what they are signing onto.
If anything good comes from my situation, I hope you learn from my mistake and make more informed rental decisions. Thoroughly read your rental agreement, never rely on verbal confirmation, and, in most cases, try to avoid tenancy-at-will agreements.
To comment, please create a screen name in your profile
To comment, please verify your email address
Conversation
This discussion has ended. Please join elsewhere on Boston.com