Some people want to have a long-term, familiar home base where they can live for years and years, while others enjoy a little more variety in their living environment.
The nomadic lifestyle is becoming quite common. With many companies allowing their employees to work remotely, there’s no need for some people to live in a certain city or location near an office. So instead of signing a lease for a year or more, many are opting for short-term leases that allow them to bounce from place to place with ease.
What is a short-term lease?
Short-term apartment leases are rental agreements that have a shorter duration than a traditional lease. They typically last for six months or less, some lasting for only a week or two at a time.
Short-term leases seem appealing to renters who want more flexibility and convenience and don’t plan on living in the same place for very long. However, many renters may not be aware of some of the unique conditions that can come with short-term leases.
While short-term leases may offer more flexibility, it is important for renters to understand the additional terms associated with them. These leases often come with unique terms and conditions, such as higher rent prices, limited renewal options and early termination fees. It is crucial for renters to understand these terms before signing a short-term lease, as they can significantly impact the overall cost and comfort of the rental experience.
Terms you might see in short-term leases
Leases are based on what each individual landlord requires of tenants, so you may see different terms in every lease. Here are a few things to look out for and be aware of when reviewing a short-term lease.
Rent prices
Short-term leases are usually viewed as a higher risk for landlords, so they might come with higher prices. And, depending on the terms specified in the lease, rent prices may be subject to change each month, instead of being locked in for a long period. That means the landlord could raise the rent from one month to the next. Proper notice is required by law to raise the rent, but in most states, there’s no limit to how much the rent can be raised, so it could go up significantly.
Renewal options
Some leases allow for renewal once the original rental period is over. Short-term leases may offer limited renewal options—or they may not offer renewals at all. This means that if you want to stay in the apartment for longer than your original short-term lease period, you may not even be able to and you’ll have to find a new place to live.
Landlords typically cycle through tenants quickly with short-term rentals, so they aren’t usually waiting around for tenants to decide if they want to renew or not—they simply find new tenants to take over the rental once your lease is up.
For those that do allow for renewals of short-term apartment leases, they may raise the rent price from one lease period to the next or make changes to the lease terms that you would need to comply with in order to stay in the rental.
Property inspections
Because short-term renters might not be living in the property for very long, landlords may assume they aren’t as invested in keeping the rental unit in good condition. For that reason, landlords may require frequent property inspections to ensure that tenants are maintaining the apartment. The frequency of these inspections should be specified in the lease terms and might range from once every couple of months to once a week.
Common types of short-term leases
While there are many types of short-term leases, there are a handful that you’ll come across the most often. These aren’t the only types of short-term leases and landlords can modify rental agreements to be whatever they see fit for their property.
Month-to-month lease
A month-to-month rental agreement is one that automatically renews every month until either the landlord or tenant decides to end the agreement. This type of lease offers more flexibility than a traditional fixed-term lease, as it allows renters to stay in a place for as long as they need.
This setup can be very helpful if they are just starting a new job and don’t know how long they’ll be in a city or for nomadic travelers who want to move around and explore different cities without a commitment to stay long-term. When ending a month-to-month lease, whichever party is terminating it needs to provide written notice at least 30 days in advance, as required by law in most states.
Weekly lease
Similar to a month-to-month lease, a weekly lease is a rental agreement that is automatically renewed, only on a weekly basis. This type of lease is most commonly used for temporary housing situations, such as a short-term stay for someone who might be getting extensive work done on their main residence and need a place in the interim or travelers who want to bounce from one place to the next. The rent for a weekly lease is usually higher than a monthly lease, as the landlord is able to charge for the convenience of a short-term stay.
Corporate lease
A corporate lease is a rental agreement between a landlord and a corporation, rather than a typical tenant. This type of lease is often used when companies need to provide housing for their employees.
Such cases usually occur when a company requires an employee to relocate for work and gives them a place to stay temporarily or for business trips. Corporate leases often have terms that can be customized to meet the specific needs of the corporation and its employees at the time.
Furnished apartment lease
A furnished apartment lease is for an apartment that comes completely furnished with everything from basic furniture to kitchen appliances to utensils. This type of lease is often used by individuals who are in need of temporary housing, such as students, people in between homes and those traveling for business.
Furnished apartment leases are typically more expensive than unfurnished apartments, tenants are paying for the convenience of having virtually everything provided for them—all they need to do is bring a suitcase with their clothes and personal items. However, it can save tenants money in the long run, as they don’t need to purchase anything upon moving in.
Carefully read the terms of short-term leases
Short-term leases can offer a lot of appealing terms, such as flexibility and convenience. However, you should make sure you completely understand the terms of the apartment lease, as they can have a significant impact on your overall living experience. Take the time to understand these terms before you sign so you can make an informed decision and choose the right lease for your needs.
Source: rent.com