When you rent a property, you have the option of choosing between a long-term and a short-term lease. But in order for you to decide which option is better, it is important to know the advantages and disadvantages of each one.
Let’s start with the short term lease. Simply put, it is one where the parties are bound by a shorter lease. In this sense, it offers parties more flexibility and is therefore more suitable for people who have to change locations frequently. For people who work as store managers, heavy machinery operators, or whose jobs require them to relocate periodically, a short-term rental may be what they need.
However, the flexibility of the short-term lease doesn’t just benefit the tenant. It also gives the landlord flexibility by allowing him to change the terms and conditions of the lease regularly. For example, the landlord may choose to increase the rent amount after the lease expires. A short-term lease can also work to relieve the landlord of a troublesome tenant.
On the downside, a short-term lease is not very common because more landlords prefer long-term ones. But perhaps the main reason homeowners choose long-term over short-term may be due to the cost involved. Short-term leases are more expensive for the landlord due to the cost of advertising and the effort involved in vacating the property. To offset the cost of listing the property, many homeowners often require a higher security deposit.
A long-term lease is one in which the parties are linked to each other as landlord and tenant for a longer period. Compared to a short-term rental, a long-term rental offers each party more stability. Since the landlord is prohibited from increasing the rent until after the end of the lease, it is more economical for the tenant to enter into this type of lease.
On the part of the landlord, one of the advantages of entering into a long-term lease is the billing amount. There are fewer vacant properties in one in the long term and for the landlord, this means less effort and expense in terms of advertising. A landlord does not need to increase the security deposit to recover the expense.
Long-term leasing is therefore ideal for people with jobs that do not require them to relocate frequently. It is also the ideal type of lease for people who want to start a family of their own. Because rent is cheaper, long-term rentals make it easy to save.
But whether you’re opting for a long-term or short-term lease, make sure you fully understand the terms of the lease to avoid misunderstandings. Keep a copy of the contract for reference.