The advantages and disadvantages of short and long term leases

There are advantages and disadvantages to both short-term and long-term leases. Knowing what these advantages and disadvantages are is important because it could help you decide which option is right for you.

For starters, a short-term lease is a contract, whether oral or written, that grants a tenant the right to use and enjoy the leased premises for a short period of time. Due to their flexibility, short-term leases are best suited for tenants who are always on the go or plan to stay in the leased premises for only a few days or weeks at a time.

However, the disadvantage of a short-term lease is that it is often more expensive. Landlords may adjust and increase the rental rate or make additional provisions that may be burdensome to the tenant.

In this type of agreement, the landlord is not bound by any agreement and can easily evict any tenant they deem to be problematic. These leases can also become a problem for tenants who want to use and enjoy the property for a longer period of time.

The other option is long-term leasing. By their nature, these leases offer more security to both the lessor and the lessee.

In long-term leases, the landlord’s hands are tied and he is subject to the provisions of the contract. Therefore, long-term leases work out cheaper for the tenant because the landlord cannot unilaterally increase the rental rate until after the lease ends.

Because there are lower churn rates with long-term contracts, owners don’t have to advertise vacancies as much. Landlords can then afford to offer rented facilities at lower than prime rates, which translates into savings for the tenant as well.

Both short-term and long-term agreements have their advantages, but it’s up to you to decide which one is best for you. Whatever you decide, remember that it is always best to have the agreement in writing to protect your interests.