<p dir="ltr"><img alt="business team staying connected in multiple locations" src="/images/blog/Can%20Short%20Term%20Leasing%20Benefit%20You_.png" style="width: 100%;" /></p>
<p dir="ltr">Short-term leasing offers benefits to both renter and owner. Different from a <a href="https://www.rentspree.com/blog/lease-agreement">long-term lease</a> yet more stable than a vacation rental, there are some significant benefits to offering a short-term leasing option for your house or apartment. Short-term leases may be considered week-to-week, month-to-month, or sometimes 3 and 6-month increments.</p>
<p dir="ltr">Learn more about how short-term leasing can benefit you.</p>
<h2 dir="ltr">Capitalize on the Hot Housing Market</h2>
<p dir="ltr">Pretty much anyone who reads a headline knows that many United States housing markets are so hot -- they're on fire. When permanent housing is in short supply, many turn to short-term housing as a bridging solution. <a href="https://www.apartmentguide.com/blog/short-term-leases-house-shopping/">Apartment Guide</a> recommends short-term leasing as an opportunity to make the most of prospective buyers' opportunities.</p>
<p dir="ltr">By avoiding a long-term lease the buyer is able to employ strategies such as shopping for a home during the off-peak season or maximizing finances. For those who have previously owned a home, a bigger down payment can be made by waiting until the old home sells first before purchasing. This is also necessary for certain home loans like obtaining a second loan through the VA. Short-term leases are also great for buyers allowing a lengthier move-in option so the process is less rushed, allowing time to renovate and repair a new home, and extending buyer strategies such as offering the seller a 30 to 60-day rent-back.</p>
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<h2 dir="ltr">Change Lease-term with the Market</h2>
<p dir="ltr">Rules have changed so much for landlords and owners over the past 2 years. It can be difficult to keep a property that is both in good condition and cost-effective with the different moratoriums, rental laws by location, and ever-increasing costs and inflation. Short-term leasing offers flexibility for landlords as well.</p>
<p dir="ltr">As shared with <a href="https://bungalow.com/articles/month-to-month-leases-what-they-are-and-why-youd-want-one#why-would-you-want-a-month-to-month-lease">Bungalow</a>, short-term leases allow the landlord abilities they would not have in a long-term leasing situation. Landlords may change costs and prices with little notice for a shorter lease. For example, if property taxes report at $2000 higher than expected, the owner can work to absorb these costs by increasing the rent instead of decreasing profit on the renewed lease.</p>
<p dir="ltr">Landlords and owners additionally have greater flexibility to cease leasing and terminate a bad renting relationship. Month-to-month and shorter leases offer less eviction protection than an extended lease in many cases since the landlord can simply choose not to renew instead of going through courts to remove a problem tenant. In addition, most short-term leases are offered at a higher monthly cost than long-term leasing. While some of this cost can be absorbed by more frequent move-in/move-out costs, this can still be a lucrative strategy for many owners in a rapidly fluctuating market.</p>
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<h2 dir="ltr">Short-term Leases can Extend Good Rental Relationships</h2>
<p dir="ltr">As experts at <a href="https://www.thebalancesmb.com/pros-and-cons-of-short-term-leases-4688842#:~:text=Flexible%20Move%2DOut%20%E2%80%93%20The%20main,intent%20to%20vacate%20the%20unit.&text=Change%20Terms%20%E2%80%93%20Short%2Dterm%20leases,other%20terms%20of%20the%20lease.">The Balance</a> point out, most long-term lease relationships will eventually become short-term, month-to-month leases at some point. Good renters will typically, eventually leave. Sometimes this is for a new job or a move, other times this is to accommodate an expanding family. Good renters will often prefer a month-to-month lease after their initial leasing period in order to process their best options. This flexibility allows landlords to keep good tenants in units as long as possible, and many charge a slightly higher rent for this convenience.</p>
<p dir="ltr">Another reason a landlord may choose to offer a limited lease to a long-term rental is if the property is scheduled for significant maintenance, sale, or demolition. If a property will be torn down in 14 months for a public works project, for example, it would be difficult to get new tenants in for this short time period. Better to allow a flexible lease with existing tenants that remain vacant until the process concludes.</p>
<p dir="ltr">In many jurisdictions, leases will default to month-to-month if a new long-term contract is not provided. For this reason, understanding short-term options are beneficial to all property managers and owners as well.</p>
<p dir="ltr">Short-term leasing is a tool that can benefit both renter and owner. Used to best "roll" with our rapidly changing real-estate markets, this tool can be a boon to renters in transition. Landlords can bring higher monthly revenues and add flexibility to properties that could quickly become unprofitable in the wrong market. Both long-term residents and owners can extend friendly relationships through month-to-month leases for life changes and large building events. Explore short-term leasing in your area.</p>
