Today, more people are renting homes than anytime before 1965.
If you’re on this trend, then it is important to consider which type of lease is right for you. A short term lease can provide flexibility, a home away from home, and extra services. However, there are disadvantages as well.
Keep reading to learn about the pros and cons of short-term renting.
Here are the top three benefits to leasing short-term.
1. Time and Flexibility
If you are moving to a new city and need time to explore the neighborhoods, commute times, and housing market, then a short-term rental is perfect.
Short term leases are also great if you have purchased a home in a new area but are waiting for renovations or closure. Specifically for those who can’t wait to move due to a new job or school.
They also provide flexibility as typically residents have the option to renew the lease for a longer period of time. This is beneficial if you need more time due to longer work or postponed moving, for example.
Temporary leases are also perfect if you happen to fall in love with the home and/or the area and want to stay longer.
Of course, another benefit is the fact that a short term lease is short-term. If you absolutely end up hating your short-term rental, the neighborhood, or even the city, then you have the option to move after a small period of time.
Thus, temporary leasing is a great option for those who do not want to make a commitment.
2. Temporary Home
If you need a place to stay while on a temporary work assignment, internship, or even vacation, then short-term rentals can provide a temporary home away from home.
Signing a short lease will most likely be cheaper than renting a vacation home or staying in a hotel. Plus, leases put all the responsibility on the property managers/owners.
Many apartments or houses that offer short-term or temporary leases come with amenities you don’t always find a longer lease.
To start, it is easy to find short-term rentals that provide furniture. This makes short-term leasing a great option for those who may be temporarily working in a new city or are between moves.
Since many short term leases are in apartment or condo communities, they often come with amenities such as maintenance services, gyms, pools, and recreational activity spaces.
Here are three disadvantages to consider when leasing short-term.
1. Costs of a Short term Lease
Short-term residents are consider higher risk and short leases puts more work on the leasers. They have to market and find new residents more often which will also cost property owners more.
This is why short term leases are generally more expensive than long-term leases.
While they may cost more in rent, the amenities that come with many temporary rentals quickly make up the difference. You may not have to worry about paying for a gym membership, lawn care, etc.
2. Not the Best for Credit
Going from lease to lease means companies are running your credit report over and over. This can put a damper on your credit score.
In addition, it may be harder to find and get approved for a short lease because leasers consider temporary residents high risk (they have to do more work and spend more money).
A large disadvantage to short term leases is the flexibility of the leasing company. They are able to increase your lease after the period is up if you decide to stay.
Renewing short-term rentals has also been known to accompany term changes, as well. For example, you may lose some of the benefits just as lawn care or may have to put down a higher deposit.