When considering leasing agreements, it is often necessary to make a decision between a short-term and long-term lease. There are pros and cons to both of these lease arrangements, and you should take a number of factors into consideration before deciding which is right for you.
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. So there is a fine line between price and duration of stay when searching for a place to live.
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.
Short-term leases also give a landlord more of an opportunity to evict someone who they feel is a problem tenant. Although a short-term leasing agreement gives the renter more flexibility, it also provides the landlord with additional flexibility to change the terms of the rental agreement more frequently.
A long-term leasing agreement can provide a more stable arrangement for both the renter and the landlord. Rental rates are generally lower for long-term leases, which can save the renter money. It can be easier to budget when one has a long-term agreement, since the landlord will not be able to raise the rent in the middle of the current leasing arrangement, and in most cases will be required to wait until the end of the long-term leasing arrangement to give proper notice of their intent to raise the rent.
Although a long-term arrangement doesn’t offer as much flexibility for either the renter or the landlord, both sides often prefer the stability over a short-term agreement. 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.
Regardless of whether you enter into a long-term or short term leasing agreement, you should have the agreement formalized by signing a written rental agreement. This agreement should state the obligations of both the renter and the landlord, and should describe the terms and conditions of the agreement in detail.