A rental agreement between the landlord and tenant sets down the terms which will be followed while the tenant lives in the rental unit.

The following is a description of the two most common types of rental arrangements: leases and month-to-month rental agreements. But whatever a rental agreement is called, it's important to read the document carefully to learn its exact terms.

Month-to-Month Agreement

This agreement is for an indefinite period of time, with rent usually payable on a monthly basis. The agreement itself can be in writing or oral, but if any type of fee or refundable deposit is being paid, the agreement must be in writing.

A month-to-month agreement continues until either the landlord or tenant gives proper notice to end it.

The rent can be raised or the rules changed at any time, provided the landlord gives the tenant proper notice.

Lease

A lease requires the tenant to stay for a specific amount of time and restricts the landlord's ability to change the terms of the rental agreement. A lease must be in writing to be valid.

During the term of the lease, the rent cannot be raised or the rules changed unless both landlord and tenant agree.

Leases of one year or more are exempt from the Landlord-Tenant Act, but only if the tenant's attorney has approved such an exemption.