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In the last 2 cities that I've lived in (Washington DC and Santa Monica) leases default to month-to-month after the lease reaches term. For example, if you sig
by ryan_j_naughton 6y ago
In the last 2 cities that I've lived in (Washington DC and Santa Monica) leases default to month-to-month after the lease reaches term.
For example, if you signed a 1 year lease, you are required to pay monthly for that entire year or face still penalties. But once you reach the end of your 1 year lease, your rental goes month-to-month. That implies that the rental rate stays the same (unless sufficient notice is given by the landlord, generally 30 or 60 days prior to the end of the 1 year lease). Furthermore, if you want to vacate, you have to provide a certain amount of notice (generally 30 days).
The key difference is whether rent control is in play there. In my Santa Monica apartment it was in play and the rent could only raise once per year and there was a maximum percentage increase allowable per year.
In Washington DC the vast majority of apartments are not under rent control. Consequently, the apartment legally has to default to month-to-month, but it doesn't have to stay the same rate. Generally what that means is that the landlord, 60 days before the end of the 1 year lease, will provide the tenant a new rate sheet with a monthly price is they want a 1-month lease, a different monthly price for a 6-month lease, and a different monthly price for another year lease. The 1-month lease price is generally MUCH MUCH higher than the new 1-year lease. That incentivizes the tenant to sign a longer term agreement and provide the landlord certainty of occupancy.