A monthly rent invoice is a billing form used by landlords to request payment from a tenant for one or more months of rent. Use this invoice to collect rent by the month or to collect the entire amount for a 6 month lease when renting an apartment, house, or condo. A breakdown of utilities and all other charges separate from the rent payment should be included, such too as the security deposit payment.
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When leasing an apartment or house to a person, known as a tenant, a lease agreement is signed which normally holds a term of 1 year. However, when leasing a property on a monthly basis it is not possible to sign a standard one lease agreement.
Renting month to month after a lease expires is something that happens frequently. There are many reasons this could happen. For one, it’s possible that the landlord forgets to sign a new lease after the original lease term ended. If the tenant continues to go about paying rent, by default the relationship between the tenant and landlord would become a tenancy-at-will, which simply means a month to month lease that can be terminated by either party with 30 days notice.
Step 1 – Screen Tenant
Once a tenant becomes an occupant within a property, it can be very hard to force (evict) a tenant to leave if they become a problem. Because of this, a tenant’s references, credit score and a background check must be performed before agreeing to a deal. A rental application is used to collect information in order to screen the tenant.
Step 2 – Collect Security and Define Rules
If the tenant passes the screening process, they must then put down a deposit which hold them responsible if damages are to occur in the future during their tenancy. Every State has their own laws, or lack there of, when it comes to the limits a landlord can demand for a security deposit. Most landlords require 1 or 2 months, depending on the tenant’s credit score and rental history. Before handing over the keys, a monthly rental agreement should be signed detailing the rent amount per month, utilities, and the property rules such as the smoking and pet policy.
Step 3 – Allow Occupancy
If the lease starts on the first of the month but the tenant is ready to move-in before the actual starting date, allow the tenant to move in and prorate the extra days. The prorated days should be added to the first month’s invoice. All tenants should be made aware if the property was built prior to 1978 and disclosure of lead-based paint should be known if there is an issue.
Due to the nature of a short term monthly lease, the tenant will not be staying for long. It’s best to prepare ahead of time for when it comes time to move the tenant out of the property. Most States require 30 days notice (with a termination letter) when either a tenant or a landlord terminates a lease, allowing the other party to prepare for the transition. If the tenant paid a security deposit prior to move-in, the deposit must be returned to the tenant no later than the required maximum time by your State (normally between 30-60 days). When a tenant fails to remove themselves and their belongings from the property, a notice to quit should be sent by certified mail as a final warning before the eviction process begins.