Understanding the short-term and long-term lease is beneficial when considering your next rental. There are pros and cons to both types of leases. Taking into account your needs and plans are important when considering which lease is best for you.
The first thing to consider is how long you intend to stay in your rental. If you are not planning on a long stay, a short lease agreement may be your best option. But the fact that your landlord can increase your rent more rapidly than a long-term contract or change other lease terms can make a shorter lease less desirable.
With a short-term lease, the tenant does not have to worry about being locked into a long contract. However, with a short-term lease the landlord can make changes to the lease at more frequent intervals including increased rental rates.
Theses lease gives both the tenant and landlord flexibilities. The tenant has the ability to move whenever they want or need. Conversely, the landlord has the flexibility to change the leasing terms more often.
Long-term leases are good for a more stable landlord-tenant relationship. Though the agreement is not as flexible as the short-term agreement, there are many advantages to this type of lease agreement.
In most cases, the rent for a long-term agreement is lower than the rent of a short-term agreement, which can be a big advantage to the tenant. In addition, landlords rarely raise the rent until a current lease agreement has expired.
This more stable lease agreement allows the tenant to better budget for their rent which is an advantage to the tenant. An advantage to the landlord is that a long-term lease generally provides for a lower turnover rate resulting in shorter vacancy periods and less advertising expenses.
Short-term and long-term leases both have advantages and disadvantages to all involved. Considering your needs as the tenant or landlord is important when deciding which lease option is best for you. No matter which you choose, always ensure an agreement is done in writing.