What Is a Short-Term Lease?
Short-term leases and rental agreements are usually less than six months and run on a month-to-month contract. A month-to-month rental agreement may or may not be renewed at the end of each month. Sometimes, renters will even offer a weekly rent agreement, or even less, usually for vacation rentals. Areas with high demand and low supply of rental property typically have the most short-term leases.
Benefits of Short-Term Leases
One of the most significant benefits of signing a short-term lease is flexibility. If you are working in a field that requires you to relocate with little notice in advance, a short-term rental may benefit you. A short-term lease may also be beneficial for individuals looking for a new place of employment, as they would be free to move closer to a job site if needed. A short-term lease could also be useful for a person who has just moved to a new city and is looking for a temporary residency.
Drawbacks of Short-Term Leases
There are many vulnerabilities and little stability when it comes to signing a short-term lease. At the end of a short-term rental agreement, A landlord can change the terms of your contract. A change in the rental contract could leave tenets with little time to find other housing options and leave tenets with an increased rent. Short-term leases can also make you look like a risky credit investment to your next landlord. Too many credit inquiries may also negatively affect your credit score.