Month-to-Month Leases: Flexibility Comes with Risks

A month-to-month lease offers flexibility, but it also comes with certain tradeoffs. Unlike a fixed term lease (a standard 12 month lease, for example), a month-to-month tenancy automatically renews each month until either the landlord or tenant properly terminates it under Wisconsin law.

In Wisconsin, month-to-month tenancies are governed primarily by Chapter 704 of the Wisconsin Statutes, which establishes the rights and responsibilities of landlords and tenants, including the notice required to terminate a periodic tenancy.

Benefits for Landlords

A month-to-month lease can provide landlords with greater flexibility. It allows them to:

• Regain possession of the property by serving proper notice (generally 28 days);

• Adjust rent with proper notice and in compliance with Wisconsin law; and

• Evaluate new tenants before committing to a longer lease.

Risks for Landlords

The same flexibility can create uncertainty. Landlords may experience:

• Higher tenant turnover;

• More frequent vacancies and marketing costs; and

• Less predictable rental income.

Benefits for Tenants

For tenants, a month-to-month lease can be an attractive option when life circumstances are likely to change. Benefits include:

• Flexibility to relocate by providing proper notice (generally 28 days);

• Avoiding the costs often associated with breaking a fixed-term lease; and

• An opportunity to determine whether a rental property is the right fit.

Risks for Tenants

Because the tenancy is not locked in for a set term, tenants may face:

• Less long-term housing stability;

• Rent increases, when permitted by law; and

• Termination of the tenancy if the landlord provides the notice required under Wisconsin law.

Know Your Rights

Even though a month-to-month lease is more flexible than a fixed term lease, it is still a legally binding agreement. Under Wis. Stat. § 704.19, landlords and tenants generally must provide at least 28 days' written notice to terminate a month-to-month tenancy, unless an exception under Wisconsin law applies.

Choosing the Right Lease

A month-to-month lease is often a good choice when flexibility is the priority. If stability and long-term planning are more important, a fixed-term lease may be the better option.

Whether you are a landlord drafting a lease or a tenant reviewing one, understanding your rights can help prevent disputes and protect your interests.

If you have questions about Wisconsin residential leases, notices to terminate, or landlord-tenant disputes, contact Ivy Legal today.