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
Lessors of real estate play a crucial role in the leasing process. They enable property owners to boost their assets and profits while providing tenants access to dwelling spaces and ...
Older property is bought usually by a governmental agency to be modernized and improved. In many cases, the deteriorating property is torn down and a new structure built. An example is ...
Cement or mortar with a high moisture content developing it into a slurry solution allowing the ability to be poured or pumped into crevices, fissures, and masonry cracks and joints. ...
Circumstance where no people or contents occupy or are kept in a building for at least 60 consecutive days. The same stipulations apply to property coverages as found in unoccupancy. ...
Modeled after the English Georgian style, this architecture is a perfectly scaled grand symmetrical structure which is extremely formal and conventional in style. ...
The number of days that the lender guarantees the loan's rate and terms. Without a written lock-in agreement, the lender is free to change the rate and terms at the time of loan closing. A ...
Property deed in which the grantor limits the title warranty to the grantee. A grantor does not warrant a title defect to the property occurring from a happening before the time of his ...
Estimated price at which a partner in a partnership can buy out another partner. There are several methods for developing a buy-out estimate including market comparisons, appraisals, or ...
Latin: now for then. Descriptive of actions which are performed after a deadline has elapsed, but retroactively have the same effect as if they were carried out in a timely manner. For ...
Have a question or comment?
We're here to help.