Safeload Coverage
When you tour an apartment, house, or another rental unit, you’ll have to decide which place is best for you. Once you figure out that part, you need to decide the length of your lease: Short-term vs. long-term lease and which one is best for you.
This Moving Help® guide will discuss the pros and cons of a short-term and long-term lease, how to decide between short-term and long-term leases, how to negotiate your lease terms, and how to maximize your rental experience.
Understanding Short-Term and Long-Term Leases
Before discussing the pros and cons of a short-term lease and a long-term lease, it’s important to understand what is a lease. It’s also important to understand what is a short-term lease, and what is a long-term lease.
A lease term refers to the length of time you agree to rent a property from a landlord under a specific set of conditions.
Typically, a short-term lease is less than 12 months. A usual short-term lease is month-to-month, three months, or six months. Of course, you and your landlord will agree to what is considered a short-term lease. Your landlord should already know what a short-term lease is for them.
A long-term lease is anything for 12 months or longer. Some long-term leases are 12 months, 15 months, or 24 months. Again, your landlord will know what they consider a long-term lease.
Short-Term Leases: Pros and Cons
A short-term lease can provide flexibility and mobility benefits, potential for higher rental rates, and an increase in management responsibilities.
Flexibility and Mobility Benefits
A short-term lease allows for flexibility and mobility for renters. If you live somewhere temporarily, have a short work assignment, or have an internship in another state, a short-term lease offers flexibility.
Additionally, if you’re unsure about an area, you can live there for a short period before you can decide whether you want to live there long term.
Higher Rental Rates
While short-term leases offer flexibility for tenants, it comes at a cost. Short-term leases will come at a higher cost. Of course, the higher rent price tag is different across the United States. Landlord owners will want to charge tenants more money since a shorter lease means less stability for them.
If you don’t mind the higher rental rates, a short-term lease can be a great option.
Management Responsibilities Will Increase
One of the many reasons most landlords don’t prefer short-term leases is because of the increased maintenance costs and quick turnover rates. When a tenant leaves, the landlord will need to go into the rental unit and clean, fix, repair, or replace anything the previous tenant caused to get the unit ready for the new tenant.
The landlord also will have to advertise, go on tours with tenants — in person and virtual — and find tenants who want to sign a lease with them. If they can’t find anyone quickly, this could lead to instability in income.
Long-Term Lease: Pros and Cons
A long-term lease can provide stability and predictability for tenants and landlords. Longer leases create less turnover and more consistent income for landlords. You also have legal considerations and tenant rights.
Stability and Predictability
By signing a long-term lease, tenants will gain some peace of mind knowing they’ll stay put in one place for a while and pay the same amount of rent. This can make it easier for tenants to plan for their short-term and long-term futures knowing they don’t have to find housing anytime soon.
If tenants enjoy where they live, they can put down family roots as well. Landlords also like long-term leases because they don’t have to worry about advertising the rental unit as frequently.
Lower Turnover and Consistent Income
The biggest positive for landlords is lower turnover and consistent income when their tenant signs a long-term lease. Landlords can focus on other tasks knowing their rental unit has been secured for the next year or longer.
Additionally, landlords also can guarantee themselves a consistent amount of income each month. They can use this money to pay bills and complete upgrades around the community.
Landlords see having vacancies as a positive bonus.
Legal Considerations and Tenant Rights
If you sign a lease agreement, your landlord can’t increase your rent during the term of your lease. They can only increase the rent when a tenant re-signs a lease with the landlord.
On the flip side, if you need to move and break your lease, you can expect to possibly pay the landlord hefty fines such as multiple months’ worth of rent, breaking your lease fees, and other fees after you give your notice.
Every state has different laws, rules, and regulations for tenant rights and landlord rights. Find out what your rights are in the state you live in, so you can protect yourself from the other party.
How to Choose Between Short-Term and Long-Term Leases
The answer to deciding between a short-term vs. long-term lease will depend on your own individual circumstances. You’ll need to think about your future plans and current lifestyle.
If you’re starting a new job, in a transitional phase, don’t want to set down roots, or looking for the right neighborhood first, a short-term lease might be better for you.
If you’re looking for stability, want to live in one place for a long period of time, or have a lower price in rent, a long-term lease could suit your needs more.
You also need to consider the market conditions, and the property type you want to live in. In a competitive market, short-term leases will provide immediate availability, but it’ll come at a much higher cost. If you want to rent a condo vs. a townhouse, or an apartment unit, you might find a discrepancy in availability in your area.
You also need to evaluate your personal goals and financial stability. Do you plan on moving or finding a new job soon that requires a longer or shorter commute? How much money can you afford to pay rent yourself? Does this place accommodate your lifestyle needs? These questions can help shape you to know whether you need a short-term vs. long-term lease.
Negotiating Lease Terms to Fit Your Needs
Did you know you as a tenant you can negotiate your leasing terms with your landlord? Some landlords won’t budge, but some landlords will compromise with you.
You must come prepared, though.
You can negotiate the length of your lease, the rent amount, or both. It’s best to start by searching other apartment complexes in the area to see what other landlords are charging. If yours is charging more than the average in the surrounding area, you could get some dollars knocked off the rent price. You also can negotiate how long you want the lease to last, especially if you only need the lease to last four months, eight months, 11 months, or another period of time.
You should understand your rights and obligations as a tenant. Make sure you know your tenant’s rights, and this is important because every state has different tenant laws — including how long the tenant must return your security deposit.
Short-Term vs. Long-Term Lease: Making the Decision
Ultimately, whether a short-term lease or a long-term lease will work better for you depends on your lifestyle, personal plans, future goals, and career opportunities. Your average monthly income also will factor into what you can afford while keeping in mind the length of your lease.
A short-term lease provides flexibility in your living situation, especially if you don’t know expect to be somewhere permanently. A long-term lease offers the opportunity for a stable home base and set up roots.
Whenever you’re ready to make a decision, Moving Help will be here ready to assist you. We have more than 7,000 Moving Helpers in all 50 U.S. states and the 10 Canadian provinces, so you’ll find moving labor that fits your needs and budget.
