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Month-to-month or one-year lease: which is better for an apartment owner?

For most apartment owners a one-year lease is the better default: it locks in income, cuts turnover and lets you plan renewals. Month-to-month gives flexibility, but in states such as Washington and Oregon it gives the owner much less of it than people think, because just-cause rules limit ending a month-to-month tenancy. The right answer depends on your state, your vacancy cost and your plans for the unit.

The trade-off at a glance

One-year leaseMonth-to-month
Income certaintyTwelve months of rent agreedCan end with notice, subject to state law
Turnover costAt most once a yearCan come any month, including slow ones
Raising rentAt renewalWith notice, any month, subject to state law
Ending a bad tenancyFor lease breaches or at the end of the termWith notice where no cause is needed; otherwise for cause
Fits whenMost stabilized buildingsA unit you plan to renovate, sell or move into soon, where the law allows

Turnover math decides most cases

A vacancy costs you the rent you do not collect plus cleaning, painting, repairs and listing time. A higher rent on a month-to-month unit has to cover the extra risk of that cost arriving more often.

Example a made-up unit rents for $1,500 a month. A turnover costs one month of lost rent ($1,500) plus $900 of paint and cleaning, or $2,400 in all. If one-year leases mean a turnover every 30 months on average and month-to-month means one every 15, the yearly turnover cost is $2,400 times 12 divided by 30, or $960, against $2,400 times 12 divided by 15, or $1,920. The month-to-month unit needs $960 more a year, or $80 a month more rent, just to break even.

Your own numbers will differ. The point is to compute them: the unit turnover checklist lists the costs to include.

State rules that change the answer

Washington: just cause covers month-to-month

For a month-to-month tenancy, a Washington landlord may not end it except for a cause listed in the statute (RCW 59.18.650). There is a narrow exception at the end of a first fixed term of six to 12 months, with at least 60 days' written notice. So month-to-month does not give a Washington owner an easy exit.

Oregon: the first year is different

Under ORS 90.427, an Oregon landlord may end a month-to-month tenancy on 30 days' notice during the first year of occupancy. After the first year, only for a tenant cause or a qualifying landlord reason, such as demolition or the owner moving in, with at least 90 days' notice. A fixed term that ends after the first year becomes month-to-month unless the parties sign a new term or a listed exception applies.

New York: notice grows with time in the unit

For a rent increase of 5 percent or more, or a decision not to renew, New York requires 30, 60 or 90 days' notice depending on how long the tenant has lived there or the lease length, whichever is longer (Real Property Law 226-c). Under a year with no one-year lease, 30 days; one to two years, 60; over two years, 90.

Rent control and rent stabilization rules in some cities add more. Check your own state and city before you pick a structure.

A simple way to choose

  1. Default to one-year leases for stabilized units, with renewals offered 90 to 120 days before the end date (see the lease renewal timeline).
  2. Stagger end dates so leases expire in your busiest leasing months, not in winter.
  3. Use month-to-month only when you have a concrete reason, such as a planned renovation, and your state lets you end it the way you need.
  4. If you allow month-to-month, charge a premium that covers the turnover math above, and write it into your rent schedule so every tenant gets the same terms.
  5. Put the lease length, renewal terms and notice rules in the lease itself, so nobody has to guess.

How DoorKeeping handles it

DoorKeeping keeps each property's rent roll and books, so you can ask Claude or ChatGPT which leases end in the next 120 days or what a vacancy cost you last year. Renewal offers go out for e-signature. Anything involving money or a legal step, such as a non-renewal, waits for your one-tap approval. DoorKeeping is $2 per unit per month and does not give legal advice.

Sources

  1. Washington RCW 59.18.650, ending a tenancy (just cause), read Oct 29, 2026
  2. Oregon Revised Statutes chapter 90 (ORS 90.427), read Oct 29, 2026
  3. New York Real Property Law 226-c, read Oct 29, 2026

Questions

Can I charge more rent for a month-to-month lease?
In most places you may set a different rent for a different lease term, as long as every tenant choosing that term gets the same price. Check local rent control rules.
Does a one-year lease turn into month-to-month when it ends?
Often, if the tenant stays and you accept rent. New York and Oregon say so in their statutes in set cases. See holdover tenants for the details.
How much notice do I need to end a month-to-month tenancy?
It depends on the state. Oregon allows 30 days in the first year, then only for cause or a qualifying reason; Washington requires a listed cause; New York ties notice to time in the unit.