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Short-Term Rental or Long-Term Rental: What’s the Best Fit?

Happy Family Walking into Suburban Home with For Rent Sign in YardRenting a new home in Palatine will often mean that you will need to make a lot of crucial decisions. One such important decision is choosing between a short-term or a long-term rental. Since each renter’s circumstances are not the same, then there is no right answer that works for everyone. Therefore, it’s of great consequence to think about both the pros and cons of each type of rental lease and then opt for the best one.

Pros and Cons of a Short-Term Rental

A rental with a lease agreement of six months or less is usually identified as a short-term rental. A common short-term rental that most people are familiar with is the month-to-month agreement. With this type of rental, the contract renews every month. There are numerous types of short-term rentals, with even some that occur weekly. For those renters whose situation requires a lot of flexibility, a short-term lease might be what they need. With this lease you can stay for a short while or move out immediately, should your circumstances in life change. Some short-term rentals will even add bonuses like internet service and utilities, however, not all short-term rentals provide these extras.

There are a few disadvantages when it comes to short-term leases, however. Your landlord can increase your rent and update policies and lease terms because your lease has to be updated more frequently. Short-term rentals are mostly more expensive than long-term rentals, primarily in areas where short-term rentals are in high demand. If your residency is in a vacation area or college town, it’s possible that there are more short-term rentals than long-term rentals, which will usually drive the rates for short-term rentals up.

Pros and Cons of A Long-Term Rental

Simply put; go with a long-term rental if you would rather not deal with the downsides of a short-term rental. Going long-term can also be quite advantageous. The most common lease length for long-term rentals is one year, but it can always be the difference per case. As a renter, a long-term rental can offer more stability in your rental rates and lease terms. After signing a long-term lease, the terms of that lease usually don’t change. Normally, landlords won’t want to raise your rent or do anything to change the agreement unless it’s time to renew. Long-term rentals are often more affordable than short-term rentals simply because it is more cost-effective for a landlord to lease their property for years at a time.

Regardless, long-term leases also have their downsides. After signing a long-term lease, it can be quite difficult to revoke it. If you want to end your lease early, your landlord will probably ask you to pay an extra month’s rent, and forfeiture of their security deposit. Thus, relocating to a new rental home will be quite a challenge. It might even prevent your housing costs from going down. Be advised, though, that most long-term rentals do not come with extra services or appliances. Utilities, internet, and furnishings — these are all costs that you should expect to bear.

After going through the pros and cons of both short-term and long-term rentals, you can start to weigh out which one will benefit you the most. If you’re thinking of settling down for a longer period of time, then a long-term rental might be best for you. However, if you’re uncertain of where your life is going to take you over the course of the next few months, then you can opt for a short-term rental, instead. Still, having both options will be beneficial for you.

Real Property Management Chicago Group offers a variety of rentals that might be a perfect fit for you. Call us today at 312-265-0660 or check out our rental listings for more information.

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