Short-term Lease
Definition of "Short-term lease"
Short-term leases are leases that run its completion in a faster time than regular ones.
In real estate, short term-leases usually refer to temporary housing; that is: rent.
The length of a home lease agreement is defined by the Landlord. There are no rules as to the duration of a rental agreement. It’s a matter of the Tenant agreeing to a reasonable period set by the Landlord. Some Landlords even accept a month-to-month agreement! However, it is customary to consider as a “regular” lease agreement the ones who span from 12 o 18 months. A short term-lease would be anywhere below that.
The most common duration of a short term-lease is 6 months. And it happens quite a lot, especially in cities that are common summer getaways. People rent it for the season to enjoy vacations and then head back “home”. There’s also the contrary: people who own houses and only use it on certain periods of times – like “snowbirds”; people from the north that travels south on winter to escape the cold – and rent the remaining of the year. Plus, short-term leases make the most sense for people that got transferred because of their work. A military person will most likely look for a short-term lease because most of the time they can’t enroll on long leases, as they can be relocated once again anytime soon. Businessmen benefit from short-term leases as well: they usually first rent a place for 6 months while they search the market for the perfect house to buy for their family.
Important to note: short-term leases are usually more expensive than regular leases. That’s because when the Landlord has the guarantee he/she will have a guaranteed income, it’s easier to reduce the rent price. On a short-term lease, the Landlord has no idea when he/she will find a new Tenant to occupy the house. Plus, what guarantee do they have that their house value will drop or rise in six months? As you see, they have a lot of risks with short-term leases, so they raise the price of the rent when allowing this type of agreement.
Real Estate Tips:
Roam through our Real Estate Glossary for more rent-related terms!
And if it's still too hard to wrap your head around the whole thing, use The OFFICIAL Real Estate Agent Directory® to find a real estate agent to call your own!
Popular Real Estate Terms
The return by owners of a property investment usually through a depreciation allowance. a clause in a contract permitting the prior owner of real estate to recover under certain ...
Primary horizontal support for a structure such as a house. It may be a large piece of wood, stone, iron, or other material that lies across the walls, and serves as support of the ...
The meaning of a grace period refers to a specific time after a payment’s due date. During this period, one can reimburse the amount without penalty, extra costs, or forfeiture. Find ...
Real estate, home and life insurance use numerous ambiguous terms you should know because you can significantly benefit from them. Let’s discover what the word boot usually applies to ...
For real estate investors, the vacancy and credit loss is a way to determine a property’s potential for profit. This value is determined by subtracting the losses brought by vacant ...
Method of eliminating the spaces between the solid fragments in fresh cement or mortar during the mixing process. This is done by a combination of constantly mixing, turning, centrifuging, ...
Welcome to the world of magical yet perplexing real estate! Undeniably, there's a lot to learn, but we're here to explain miscellaneous terminology so that you can make educated decisions. ...
Everyone is aware of the perplexing complexities of a real estate transaction. Enter Opendoor, a company that aims to simplify this experience. If you're a house hunter, seller, real estate ...
Vendee refers to a person to whom something is sold. The meaning of vendee is a buyer of goods and services. A more common term for vendee is a purchaser. While a vendor is a seller, the ...
Have a question or comment?
We're here to help.