What is considered a short term rental?
Property rental can be divided into short-term and long-term leasing.
There are advantages and disadvantages for the landlord to renting out properties under a short-term rental contract. As a potential renter, there are pros and cons as well.
Short-term property rental is relatively variable as far as the amount of time that defines it. If you are planning to rent for a vacation, then more than likely you will enter a short-term rental. This could be as short as a weekend, or as long as a couple of months. This does not typically include hotel or motel stay, as you are renting only the room, not the property per se. However, there are hotels that offer extended stays. They require a more extensive contractual agreement than a typical hotel, and they could fall under the short-term property definition. A long-term rental is typically considered anything six months or longer.
Advantages to Landlord
As a landlord for short-term lease property, you are not bound by any lengthy contractual obligations. This is beneficial for seasonal rent increases and for higher rates in general.
Getting rid of a problem tenant can be much easier when not under contract, with a 30-day written notice sufficing to end the tenancy, as opposed to the costly eviction process. The owner is also free to change the terms of the lease agreement on a monthly basis, as long as the tenant is notified.
Disadvantages to Landlord
As a property owner, you can experience months with empty properties under short-term rental agreements.
With tenants under contract, you don't have to expend the constant effort and advertising money to ensure your property is rented. And more tenants means more wear and tear to your unit, causing costly repairs.
Advantages to Tenant
As a property renter, you might find it necessary to rent short-term. Whether it be a vacation or travel job, the flexibility of a short-term lease does not obligate you to anything past the point you prefer.
With many such properties furnished, you will more than likely find a place to accommodate a comfortable stay. This typically includes a higher level of comfort to that of a hotel, with all the amenities that one would expect to have in their own home.
Disadvantages to Tenant
A landlord can terminate a short-term lease after giving you a written 30-day notice. It is typical for these properties to rent for much higher charges than properties with long-term leasing contracts.