When you lease a property, you have the option of choosing between a long-term or short-term lease. But 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 in which the parties are bound by a shorter lease. In this sense, it offers more flexibility to the parties and is therefore more suitable for people who have to change locations frequently. For people who work as store managers, heavy machine operators, or whose jobs require them to move periodically, a short-term rental may be what they need.
However, the flexibility of the short-term lease does not only benefit the tenant. It also gives the landlord flexibility by allowing him to change the terms and conditions of the lease on a regular basis. 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 problem tenant.
On the negative side, 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 turn out to be more expensive for the landlord due to the advertising costs and effort involved when the property is vacant. To offset the cost of listing the property, many landlords often require a higher security deposit.
A long-term lease is one in which the parties are bound together as owner and tenant for a longer period. Compared to a short-term rental, a long-term rental offers more stability to each party. Since the landlord is prohibited from raising the rent until after the end of the lease, it is cheaper 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 amount of billing. There are fewer property vacancies in a long term and for the owner, this means less effort and expense in terms of advertising. A landlord does not need to increase the security deposit to recoup the expense.
Long-term leasing is therefore ideal for people with jobs that don’t require them to move frequently. It is also the ideal type of lease for people who want to start their own family. Because rent is cheaper, long-term rentals make it easier to save.
But whether you opt 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.
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