That is the same way it works in California, most leases revert to month-to-month when the lease ends. Given that I was renting from a guy and not a company, he only re-did the lease once, so we were typically month-to-month. It's a pro and con situation, as a new lease typically comes with a higher rent, but it also gives another year of stability. I'd love to sign a longer lease, but those are rarely offered in these parts where rent rises so quickly.