The Benefits And Drawbacks Of Long And Short-Term Leases
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.
With a short-term lease, you are not forced into any specific agreements for a long duration of time. This means there is some freedom in it; however, you have to pay a much higher rent bill.
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.
Many renters find it easier to budget with a long-term lease arrangement. This is because the landlord does not have the freedom of increasing the rent as frequently. There isn’t much flexibility, but long-term leases are much more stable and promote a mutual respect for each party.
Landlords can save money when renting on a long-term basis, due to a lower turnover rate, fewer vacancy periods, less of a need to advertise, and less wear and tear on the rental unit. As such, they are generally willing to pass the savings along to the renter through lower rental rates.
Regardless of whether you enter into a long-term or short term leasing agreement, you should have the agreement formalized by signing a written rental agreement. This agreement should state the obligations of both the renter and the landlord, and should describe the terms and conditions of the agreement in detail.
The writer has been publishing commentary on home-related issues for the past four years. Additionally, this author is fond of writing with respect to real estate professionals, like Ilan Rosenthal and other individuals.