This will reduce your options, as not all apartments offer both choices. A short-term lease is a lease that is typically less than six months. They range in duration from month-to-month to three months to six months. Short-term leases may have the flexibility you desire but come with a heavier price tag.
Here's what you need to know about short-term leases. Short-term leases come with a few benefits. You may find them more convenient and conducive to your lifestyle.
Flexibility is the main draw to a short-term lease for renters looking for month-to-month accommodations or a term of six months. A short-term lease allows flexibility to take a new position at work, try out a new city, or change up your living situation when you want more privacy. These leases are perfect for students because of their short-term nature. They allow students to intern in a new place or live off-campus for a semester.
Short-term leases allow renters to pay on shorter-terms. Although short-term leases have their advantages, they also have their disadvantages. These come with the nature of the lease only lasting a few months. When you apply for a lease, your landlord might run a credit report on you to check your credit history.
This is because credit inquires are one of the factors that make up your credit score. Renters may enjoy the flexibility of a lease, but the downsides are the lack of stability for the landlord and tenant. Without a long-term tenant, landlords face looming turnover costs and sudden vacancies. You also risk needing to pack up and move again, even if you intended to resign your short-term lease.
Short-term leases may also prove more competitive. Local law may also have an impact on the terms of a month-to-month lease. In other cases, a landlord may decide to implement a month-to-month rental agreement because of high rental potential in a given neighborhood, treat the property as a vacation rental, or to accommodate the student population in a university town. While landlords will need to decide what approach works best for them, there are some common pros and cons to consider.
One of the biggest potential advantages to choosing month-to-month rental agreements is additional earning potential. Month-to-month leases can potentially enable you to charge more for rent each month, according to Rocket Lawyer.
Not everyone advocates for hiking rental prices for month-to-month renters. On the BiggerPockets forum , Marcia Maynard, who owns nearly 20 residential units houses and duplexes with her husband in Vancouver, Washington, says they charge the same rate regardless of the length of the lease. They do charge a move-in fee to cover costs of tenant turnover. They would move on their own time frame whether or not we had a lease, so the [month-to-month lease] just makes it easier for all us.
Maynard alludes to another advantage of month-to-month leases: flexibility. By not being locked into a long-term lease, landlords have more options in terms of what they can do with the property and for changing the terms of the rental, usually by providing proper notice.
Rocket Lawyer notes that in hot markets where rents are rapidly increasing and tenants are plentiful, a shorter lease agreement allows landlords to keep rents comparable to others in the neighborhood or area.
For landlords renting a primary residence, a month-to-month lease allows them to move back into their home much easier over a long-term lease. Some landlords may want the flexibility of having an empty unit available, or the ability to lease it as a vacation home or executive rental, usually fully furnished. Most month to month leases require a day notice for termination. However, if you give a day notice in the middle of the month, you may be required to pay for the entire next month of rent.
The amount of time a landlord is legally required to give a tenant to end a month to month lease varies by state. Some states only require 1 to 2 weeks, others require 30, 60 or 90 days. List with us Sign up Log in. Renter Life. Rental Management. Company News. Product Updates.
Apartment List Blog. Share this Article. By: Justin Chaplin. April 27, In this guide, we'll cover: What is a Month to Month Lease? Pros of Month to Month Apartments Is it a good idea to rent a month to month apartment? Below are some pros of these short-term leases. Added Flexibility The major draw of a month to month lease is the flexibility it offers. Easy to Convert to a Full-Time Lease If you decide you want to stay longer, most month to month leases are easy to convert to a long-term lease.
Cons of Month to Month Apartments The pros might sound great, but get familiar with the cons as well. Expensive Rent Prices Month to month leases are almost always more expensive than a long-term lease. Risk of Termination While a month to month lease offers flexibility, it also comes with the risk of termination.
Rent Instability Most month to month leases also allow a landlord to adjust the rent to the market rate. The most common lease durations include:. Here are a few things you should consider specifically before signing your name on your next rental agreement. Financial Wellbeing: 6-month leases are often more expensive than longer term leases because managers have more security in long term tenants than short term tenants.
If you are considering a 6-month lease, be sure to ask what the price difference is.
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