Long-Term And Short-Term Leases – Important Information To Know

Often when you are looking at house to rent you will have to decide between a short and a long-term lease. Naturally, both have their good points and both have their downsides, so it is important that you keep these all in mind before you sign.

A short-term leasing agreement can offer more flexibility, since you are not tied into the agreement for a long period of time. However, rent rates are customarily higher for short-term leases.

This means you might end up paying more than you would if you had chosen a long-term lease. The landlord can also raise the rent more frequently, as there is not as long of a wait between leasing agreements.

Landlords also have the freedom to evict someone much easier if you are using a short-term lease. Freedom for the renter may sound wonderful, but in the end, the landlord has just as much freedom – if not more.

In terms of long-term leases, these are usually more stable and common amongst the renter-landlord relationship. The cost of rent is usually significantly lower than short-term leases, so you will be saving money.

It can be easier to budget when one has a long-term agreement, since the landlord will not be able to raise the rent in the middle of the current leasing arrangement, and in most cases will be required to wait until the end of the long-term leasing arrangement to give proper notice of their intent to raise the rent. Although a long-term arrangement doesn’t offer as much flexibility for either the renter or the landlord, both sides often prefer the stability over a short-term agreement.

The long-term lease is also good for property-owners as the will have less need to advertise for new tenants, less time where the rental is empty and not making them money, and better long term financial knowledge. This is why they are usually happy to give the tenant some of the savings as well for a long-term lease.

Either way, make sure you have a written document signed by both parties. This should clearly explain what is expected from each party, and will be used in the event of a dispute, so go through it thoroughly.

This author has been writing about rentals for the last two years. In addition, this author enjoys publishing articles regarding real estate professionals, including Ilan Rosenthal and other individuals.