When you are looking for a rental apartment, you have three options available. These options are monthly rental apartments, short-term leases and long-term leases. The one that is right for you will depend on your specific needs and what you can afford.
Short-Term Lease Agreements
Short-term leases are a great option if you need to rent an apartment, but only for a specific period of time. For example, if your job has relocated you for a 6-month project, this is a great option. You will only be committed to the length of your stay, and you get the benefit of being guaranteed the apartment for that period of time. The landlord cannot increase the rent during the lease period either. Another benefit is that many short-term leases cannot, by law, require a security deposit. Also, many short-term lease apartments come furnished, which is great in the example given of a short-term job relocation.
The flip side of short-term lease agreements is that at the end of your lease term, if you still need the apartment, the landlord does not have to re-lease it to you. The landlord can also, at the end of the lease term, raise the rent. You are also held accountable for early termination fees or penalties if you need to move out before the lease-term has expired.
Long-Term Lease Agreements
If you have found an apartment that you like, in a neighborhood that you like, then choose a long-term lease. Lease terms are usually one, two or three years. You are guaranteed the rental for this period of time, and the landlord cannot usually raise the rent. You may also have priority benefits when renegotiating your lease, such as a set rent increase, which may be less than the market value of the apartment.
On the other hand, long-term leases are just that – long term. If something should happen that causes you to need to move out, you are liable for early termination fees and penalties, which are generally higher than those on a short-term lease. You are also required to put up a security deposit, which can be charged for excessive wear or damage in the apartment.
Monthly Rental Apartments
Monthly rentals may or may not have a rental agreement. Either way, you are not tied into any set period of time. You can move out whenever you need to. If there is an agreement, you may need to provide notice to the landlord. Monthly rental apartments are great for people that are not financially stable enough to commit to a lease, those that don’t know how long they need to rent for or for people with bad credit. These rentals give you freedom over your length of stay.
However, monthly rental apartments also give the landlord freedoms. The landlord can terminate your rental at the end of each month and can raise the rent as he sees fit.
The type of apartment you choose has to be one that you feel comfortable committing to, but remember, without a lease agreement, it is more difficult to defend or protect yourself should a situation arise.