One of the biggest decisions you'll have to make when leasing a Loveland apartment is if you'll want to opt for a short or long-term contract. The length of your rental agreement can bring with it several potentially significant advantages and disadvantages. Knowing the pros and cons of short and long-term apartment leases before you make your final decision can help ensure you choose wisely.
Some of the advantages of a shorter lease include:
Month-to-month leasing options often require as little as 30 days of advanced notice to terminate the agreement, making them the ultimate choice for renters who need a little extra flexibility. A six-month lease also provides more flexibility than signing a lease for a full year. If you may move before the year is over, a short lease is an ideal strategy.
Renting for a year (or more) means both parties are bound to what's initially agreed upon in the original contract. However, agreements with shorter durations may allow for increased negotiations and updated terms based on changing circumstances.
Reduced Tenant Risk
Shorter-term leases are also beneficial for renters that unexpectedly need to break their contract. Typically, a landlord will require anywhere from 30-60 days of notice, allowing tenants an opportunity to break the agreement without accumulating excessive penalties and fees.
Of course, there's also a downside to a lower commitment apartment contract. Some of the disadvantages to a shorter lease include:
Increased flexibility and reduced leasing come at a price. Many tenants who don't want to sign a year-long contract often find themselves paying a higher monthly rent than those who are in it for the long(er) haul.
Yes, a shorter-term contract can be beneficial for renters who need a little more flexibility with their lease agreement. However, it can (and often does) benefit the landlord as well, which plants it firmly in the con category for tenants. Put simply: property owners can increase your monthly payment at any time in a shorter contract.
Most property management firms specialize in long-term leasing, making month-to-month options harder to find. Tenants can often waste countless weeks (or even months) finding a suitable unit for their needs.
If you think you'll be staying in one place for at least a year, a long-term lease agreement can offer the right rental solution. Some benefits of a long-term contract include:
Staying in one place for at least a year can prove financially advantageous. Unlike short-term contracts that charge a premium price, a year (or two-year) agreement can offer a lower monthly rate. This cost-savings can mean being able to afford a better unit or procure an apartment in a nicer district.
As already mentioned, finding month-to-month apartment rentals can be tough. Many landlords won't offer a short-term contract as an option due to the risk of high tenant turnover. As a result, there are often more available apartments for renters ready to settle in for at least a year.
Committing to a 12-month lease can also increase the opportunity to negotiate your final monthly payment. Landlords can be more motivated to lower your monthly rent if they know that you'll be there for a longer duration.
Yes, signing an extended contract can offer increased convenience and cost-savings. However, agreeing to a yearlong rental can pose a few definite disadvantages, such as:
Fees and Penalties
Anyone who has ever broken a leasing contract knows that getting out of your agreement early can prove expensive. If you're not completely sure that you'll be able to stay in the apartment for the entirety of the contract, you may want to consider a shorter-term setup.
Signing a long-term agreement limits the opportunity for you to live anywhere else while your lease in effect. If you're new to the area or uncertain if the unit offers everything you need, you may want to think about something shorter.
Set Monthly Payments
Set monthly payments are only a benefit when you have a consistent source of income. If you should suddenly change jobs or have a salary reduction, you may find yourself unable to make your rent payments. Always lease an apartment that is at least slightly below your current means to ensure you can comfortably pay your rent each month.
All Property Services specializes in various rental options in Loveland, as well as throughout the surrounding region. Contact us today to hear more.