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Pros and Cons of Short-Term Leasing

Summertime Apartments For Rent: Pros and Cons of Short-Term Leasing

Searching for apartments for rent in the summer has its advantages and disadvantages, which is why some renters struggle with deciding on entering a short- or long-term lease. On one hand, demand is down which means a renter can likely get a better deal. On the other hand, during the summer places like Hattiesburg can become a ghost town and student renters don’t want to commit to a full-year lease prior to weighing options in the fall.apartments for rent

Some basics: a short-term lease typically means a lease that is less than six months in length. Most commonly you will see short-term leases for three months in length and also month-to-month.

While there are pro’s and con’s to short-term leasing, which we cover below, the biggest difference from long-term leasing is the flexibility. If you are trying to decide which type of lease for apartments for rent are right for you, then keep reading. Hopefully this will help you weigh your options and make the best leasing decision for your current circumstance…and bank account.

Pros of Short-Term Leasing

  • Flexibility: The largest pro of seeking apartments for rent that offer short-term leasing is the flexibility it offers. When leasing for only a three-month period, or month-to-month, a renter has options for whatever situation arises. If you need a new job, a short-term lease provides mobility to move to a new area with more employment options. If you are new to a city and want to take your time to find the right neighborhood, a short-term lease would be a perfect option.apartments for rent lease
  • Conversion: A short-term lease can provide the best of both worlds. If you begin with say a three-month term and decide you really like the place, the lease can typically be converted into a long-term situation without any monetary damages.
  • No Subletting or Paying to Break a Lease: If a situation out of your control happens and you need to change location within a month or few months, a short-term lease has you covered. If you were in a long-term lease contract you would have to either find a subletter to cover the remaining length of your 12-month term, or pay super expensive fees to break your lease. Both situations that can be painful.

Cons of Short-Term Leasing

  • Cost: The largest con of a short-term lease is that they are oftentimes more expensive than their long-term counterparts. Typically owners of apartments for rent charge more for short-term due to the turnover and the fact they need to cover their potential losses due to vacancy or damages.
  • Less Options: Due to the above mentioned risks, short-term rentals can be harder to find, meaning less options in your desired market. It costs owners money to find suitable tenants, get an apartment ready for the next tenant (Cleaning, painting, etc.) and they obviously want to maximize those costs by locking in renters for longer periods of time.
  • Instability: In general, short-term leases are unstable. The same flexibility enjoyed by a short-term tenant is also enjoyed by a landlord/owner. The fact that neither of you are committed to a long-term contract means a landlord can raise your rent frequently, and/or change the lease terms in their favor. Worst case they can decide they don’t want you to live there anymore and don’t need to give much notice.
  • Credit/Rental History: When tenants are applying for apartments for rent the one thing that is highly scrutinized is their credit score and rental history. A short-term lease may not negatively affect your credit score, but it may not help it either. Also, by choosing a short-term lease a potential landlord could view that as a negative.

Landlords of Apartments For Rent Favor Long-Term Leasing

At the end of the day a renter should always choose the leasing situation that works best for their needs, whether that is short- or long-term. But, renters will find that landlords generally prefer to have their tenants sign long-term apartment leases.

By doing so an owner/landlord/property manager ensures that their apartments for rent are covered for a full year, or longer. This means they won’t have to spend money to advertise the space, get it in move-in ready condition for the next tenant, or lose rental profits if they can’t find a good tenant.

If you are seeking apartments for rent in Hattiesburg, MS or surrounding areas and need help finding suitable options then let our experts help. Whether looking for short- or long-term options, we have a pulse on the Hattiesburg market and can get you into your dream apartment in less time. Call us at (601) 264-4626 today!

Sources

U.S. News & World Report

Posted by: southgaterealtyllc on July 6, 2017