There are advantages and disadvantages to both short-term and long-term leases. Knowing what these advantages and disadvantages are is important because it just might help you decide which option is right for you.
To begin, a short-term lease is a contract, whether oral or written, which gives a tenant the right to use and enjoy the leased premises for a short period of time. Because of their flexibility, short-term leases are more suitable to tenants who are always on the move or plan to stay in the leased premises for only a few days or weeks at a time.
The disadvantage however of a short-term lease is that it often comes out more expensive. Landlords can adjust and increase the rental rate or make additional provisions which may prove burdensome to the tenant.
In a this type of agreement, a landlord is not tied to any agreement and can easily evict any tenant he finds problematic. These leases may also become an issue for tenants who might want to use and enjoy the property for a longer period of time.
The other option is the long-term lease. Due to its nature, these leases offer both the landlord and tenant more security.
In long-term leases, the landlord’s hands are tied and he is bound by the provisions in the agreement. Thus, long-term agreements come out cheaper for the tenant because the landlord cannot just unilaterally increase the rental rate until after the agreement ends.
Because there are lower turnover rates with long-term contracts, landlords don’t have to advertise vacancies as much. Landlords can then afford to offer the leased premises at lower-than-prime rates which translates to savings also for the tenant.
Both short-term and long-term agreements have their advantages but it would be really up to you to decide which one suits you best. Whichever you decide, just remember that it’s always best to have the agreement in writing to protect your interests.