Deciding on a Short Term vs. Long Term Rental Agreement

This article, "Short-Term vs. Long-Term Lease: What's Best for Me?" was originally published on the Apartments.com Renterverse in 2023.

As you’re searching for a new apartment, it is important to consider lease lengths to decide what’s best for you. Depending on the apartment’s management, you’ll either find long-term lease options or a mix of long-term and short-term leases. It’s all up to the landlord or property manager! First, make sure you understand what each of these lease terms mean and how they will affect your rental agreement.

What is a Short-Term Lease?

Typically, a short-term lease refers to an apartment rental agreement with a duration of six months or less, but any lease that lasts for less than a year is technically “short-term.” Short-term rentals are most common in areas with high demand and a lower supply of rental properties.

A popular short-term lease length to consider is referred to as month-to-month. Renting month-to-month means that after one month’s time, you can either sign another month-long lease or inform the landlord or property manager that you do not intend to renew your lease. If you don’t plan to renew your lease agreement for another month, you will need to inform the landlord with a notice to vacate ahead of time – usually about 30 days prior to your lease’s end. This means that when you are signing a lease renewal, you will need to know whether you are staying for another month’s time in order to notify your landlord enough in advance.   

Pros of a Short-Term Lease

If you are planning on studying abroad, graduating early, or moving for a co-op, a short-term lease may be right for you. A short-term lease is best if you are unsure you can make a full-year commitment to living in one place. If you’re debating whether a short-term lease is right for you, consider these pros.

• Flexibility: In a short-term lease, flexibility is key. If you need an apartment rental that has the same flexibility as your lifestyle, then you should consider signing a short-term lease with the convenience of being able to move whenever you want. If you enjoy not being tied down to a year-long commitment, then you don’t have to! Just sign a short-term lease instead.
• Time to Adjust: Say you’ve just moved to the city and aren’t familiar with the area. You may not want to sign a long-term lease without really knowing which neighborhood you want to live in! Signing a short-term lease will allow you the time to decide what and where your perfect apartment is – whether it’s the one you’re currently living in, one closer to campus, or an apartment across town.

Cons of a Short-Term Lease

If you enjoy having flexibility in your rental agreements, then it’s likely you’ll love living month-to-month! However, a short-term lease may not be as budget-friendly as a long-term lease. If you are on a tight budget, you might want to consider the cons of short-term leasing.

• More Expensive Rent: Because short-term rental agreements provide less stability and more vulnerability for landlords or property managers, they often charge more for short-term leases. As a renter, your monthly rent will likely be higher.
• Frequent Changes in Your Lease: If you’re renting month-to-month, you can expect possible sudden increases in rent after each period. Your landlord cannot change your rent throughout your lease, but because you sign a new lease every month (or every few months), your rent is not definite and can change in a month’s notice.

What is a Long-Term Lease?

A long-term lease is an apartment rental agreement with a duration of 12 months or more. Typically, a long-term lease is considered a year-long agreement, but there are 13-month, 15-month, and longer lease lengths available depending on the neighborhood, apartment, and landlord! This type of agreement provides you and the landlord with more security and stability over a longer period of time.

Pros of a Long-Term Lease

If you know you will be in the Philadelphia for at least a full year, a long-term lease may be best for you.

• Apartment Personalization: With a 12-month or longer lease, you’ll have more time to make your apartment feel like you are back at home. You can furnish and decorate it to make it as homey as possible since you know you’ll be there awhile. It’ll make you feel as if you’re back at home while still having maintenance to help you out and no commitment to the apartment past the length of your lease.
• Less Moving Around: If you dislike moving, then long-term leases are great. Signing a year-long lease or even longer means the more time you have before you have to move again, and if you have heavy furniture or a hefty amount of belongings, then moving is definitely a hassle you’ll want to avoid for a bit.

Cons of a Long-Term Lease

If you’re not a fan of committing to a place, then here are some cons you need to consider for a long-term lease.

• A Longer Commitment: It’s long. A long-term lease means that you are responsible for paying monthly rent in your place for at least 12 months, or however long you signed for.
• Consequences of Breaking the Lease: If you decide that you need to move before your lease is up, you’ll have to pay rent and move-in fees at your new place plus the monthly rent for your old apartment – or, you can risk breaking your lease and paying a hefty fine associated with it. Either way, it’s not great for your bank account. If you do need to get out of your lease, review our article on how to break a lease, and talk to your landlord to see if they will allow you to sublet the space.

Both short-term and long-term leases can be great options for renters – it just depends on your preference. Take some time to consider the pros and cons of each apartment lease length, and you'll be ready to find your new place!

Published May 19, 2023

ABOUT THE AUTHOR

Hi, I'm Megan Bullock, a seasoned writer with years of experience in both sides of the rental industry. I focus on answering your questions about renting, as well as property ownership and management, in the hopes of making life as a renter or a landlord a bit easier.