Taking a lease often requires you to consider the pros and cons of both short-term and long-term leases. Before walking into any type of lease, you should take some time to ensure you are not making the incorrect choice.
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.
Another drawback with a short-term lease is that you have less security and the property-owner can get rid of you quite easily. The thing is that the freedom the lease gives you, also gives the landlord a lot more room to move.
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.
Another bonus is that if you have a long lease you will be able to plan further ahead with you money as there is no way the property-owner will be able to raise the rental rates until the lease is up for renewal, which can take some time. Sure, you might not have as much freedom, but generally the security of a long-term lease is more than enough of a trade of for most renters.
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.
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.
The author has been contributing articles on leases for the past six years. Additionally, this individual is fond of publishing articles about real estate professionals, such as Ilan Rosenthal and other individuals.
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Turner, Derrick "Long And Short-Term Leases – What You Should Know." Long And Short-Term Leases – What You Should Know. 2 Jul. 2010. uberarticles.com. 20 Jan 2015 <http://uberarticles.com/real-estate/long-and-short-term-leases-what-you-should-know/>.
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