Short-Term Leases vs. Long-Term Leases: The Pros and Cons

When considering leases, it is often necessary to make a decision between a short-term or a long-term lease. Both of these lease agreements have advantages and disadvantages, and you should consider a number of factors before deciding which one is right for you.

A short-term lease can offer more flexibility, since you are not tied to the contract for a long period of time. However, rental rates are typically higher for short-term leases. So there is a fine line between price and length of stay when looking for a place to live.

This means that you could end up paying more than you would if you had chosen a long-term lease. The landlord can also increase the rent more often, since there isn’t as long a wait between leases.

Short-term leases also give a landlord a better chance to evict someone they consider to be a problem tenant. Although a short-term lease gives the tenant more flexibility, it also gives the landlord additional flexibility to change the terms of the rental agreement more frequently.

A long-term lease can provide a more stable arrangement for both the tenant and the owner. Rental rates are generally lower for long-term leases, which can save the renter money. It may be easier to budget when you have a long-term lease, since the landlord will not be able to raise the rent in the middle of the current lease, and in most cases, you will have to wait until the end of the long-term lease. -term lease agreement to give adequate notice of your intent to increase the rent.

Although a long-term agreement does not offer as much flexibility for either the tenant or the owner, stability is often preferred by both parties to a short-term agreement. Owners can save money when renting long-term, due to a lower turnover rate, fewer vacancy periods, less need for advertising, and less wear and tear on the rental unit. As such, they are generally willing to pass the savings on to the lessee through lower rental rates.

Regardless of whether you enter into a long-term or short-term lease, you must formalize the agreement by signing a written rental agreement. This agreement must set out the obligations of both the lessee and the lessor, and must describe the terms and conditions of the agreement in detail.