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The downside of a month to month lease is that it doesn't represent as much permanence for landlords who are seeking long-term tenants. Tenants can give their vacate notice in as short as 30 days' time. A month to month lease means less security in the minds of many landlords.
When a lease ends, a tenant may choose to move, continue to pay rent as a month-to-month tenant, or sign a new lease. In a few states, if a tenant continues to pay rent after a lease expires and the landlord accepts the rent, the lease is automatically renewed.
If a tenant wants to end their tenancy agreement early and the landlord is not willing to agree, the tenant can ask the landlord to let them transfer their tenancy (their right to occupy the rental unit) to another person. This is called an assignment.
No. California law allows an owner to terminate a month-to-month tenancy on 30 or 60 days' notice WITHOUT providing a reason. By contrast, if no reason is given, all the owner has to show in court is that the notice was properly serve and the tenant did not move.