Pros and Cons of a Short-Term Rental
Short-term rentals come with lease agreements of six months or less. One frequent short-term rental is a month-to-month lease, renewing monthly. However, there are many types of short-term rentals, including those with weekly terms.
A short-term lease is perfect for renters requiring a lot of flexibility. They typically let you stay for a brief period or move out quickly if your situation changes. A higher chance exists that short-term rentals will include internet service and utilities, but amenities vary.
However, short-term leases do have a few downsides. Because the lease renews so often, landlords can raise the rent and change policies or lease terms more frequently.
Short-term rentals are generally more costly than long-term rentals, especially in areas with high demand. In a popular vacation area or college town, you may find more competition for short-term rentals, leading to higher rates.
Pros and Cons of A Long-Term Rental
On the flip side, a long-term rental brings stability and predictability. The standard lease length for long-term rentals is one year, but in some places, leases can last multiple years.
A long-term lease ensures that your rental rates and lease terms will remain the same. Therefore, your landlord cannot increase the rent or change the agreement until renewal. Long-term rentals are typically more affordable than short-term ones since it’s more cost-effective for landlords to lease properties for extended periods.
Yet, long-term leases can have certain disadvantages. After signing, breaking a long-term lease can be both tricky and costly. While terms vary, it’s common for landlords to require an extra month’s rent and forfeiture of the security deposit for early termination. This can make it very difficult to move to a new rental home.
It can also hinder your ability to reduce housing costs if necessary.
Also, keep in mind that many long-term rentals won’t offer additional services or certain appliances. Usually, you’ll need to bear the cost of utilities, internet, and necessary furnishings. Some landlords might permit subletting or finding a replacement tenant, which could ease the financial burden of breaking a lease.
Knowing the advantages and disadvantages of both short-term and long-term rentals, it’s time to thoughtfully evaluate your situation and future plans. If you plan to stay in one place for a while, a long-term rental might be ideal. If you’re unsure where the next few months or years will take you, a short-term rental might be better. Either way, being aware of your options can ease your decision.
At Real Property Management Advantage, we know every renter has unique needs. This is why we offer a wide range of rentals that might be perfect for you. Whether you’re looking for short-term or long-term rentals, we may have options that fit your lifestyle. Call us today at 248-554-1010 or explore our rental listings for more information.
Originally Published on March 12, 2021