What type of lease is commonly used for residential rental agreements?

A month-to-month lease is a common type of rental agreement used for residential properties. This lease structure allows tenants to rent a property on a monthly basis without a long-term commitment, providing flexibility for both the landlord and the tenant. In a month-to-month lease, either party can typically terminate the lease with proper notice, which is often set by state law.

This flexibility is particularly appealing in residential scenarios, where tenants may prefer not to commit to a longer lease term due to uncertainties in their personal or work situations. The agreement usually outlines the terms of tenancy, such as rent due date, maintenance responsibilities, and conditions under which the lease can be terminated or renewed.

While other types of leases, like net and gross leases, are more prevalent in commercial real estate, they do not typically apply to residential contexts in the same way. A commercial lease is specifically designed for business premises and may have different legal implications compared to residential leases. Thus, the month-to-month lease is the most fitting choice for residential rental agreements.