subject: Choosing Between Short-term And Long-term Leases - Which One Is The Right Choice For You? [print this page] Instead of purchasing a home, some people have a preference to lease or rent an apartment. When this is the case, they need to decide whether to obtain a long-term or short-term lease.
A short-term lease for residential rentals often refers to agreements to rent for less than one year. For properties targeted to expats, it is usually a month to month arrangement with automatic renewal, with the tenant obligated to pay rent for one more month if he fails to inform the landlord in writing that he intends to vacate within 30 days.
Most people who go for short-term leases do so because they like the freedom that not being stuck in one place implies. The freedom is particularly useful if your job means that you move around a lot.
Short-term leases do have their benefits, but there is a disadvantage as well. This disadvantage includes higher rent as well as when the lease needs to be renewed, the landlord can decide not to renew it.
If you want to stay in one location longer than a year, you should consider a long-term lease option. Unlike short-term leases, you are able to obtain more value for your money.
The benefits of long-term leasing include things like lower rent, security, and stability. With long-term leasing, there is more motivation for a working relationship between the landlord and tenant.
Usually, the big problem with this type of lease is that you do not have the same freedom as the short-term lease. This means that if something unforeseeable occurs, then breaking your lease will cost you big bucks.
With each of their own sets of pros and cons, it is advisable to choose the arrangement that will fit one's lifestyle and plans for the next year or two. Another option is to go for the long-term but negotiate for a favorable early release clause.
