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The Pros and Cons of Short-term Lease Agreements

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Marina Shlomov - Tuesday, October 16, 2018

The Pros and Cons of Short-term Lease Agreements

Ideally, you probably would like to have some great tenants who sign a long-term lease. Or, at the very least, an annual lease. However, depending on where your rental property is, you may find that you get a higher percentage of renters looking for short-term lease options. 

You may be wondering who would even want to go through the hassle of moving if only for a brief time. Many metropolitan areas, such as Atlanta, bring business tenants or those individuals who are in the city for short-term corporate training. Rather than spend a few months in a hotel, it's much more comfortable to have a home. 

Should you do it? What are the pros? What are the cons? If you are considering opening your rental property to short-term lease options, check these out: 


  • Short-term leases tend to come at a greater rental rate. Because these properties are generally rented for under six months, you are able to charge a higher rental rate. Of course, this is only true in environments where you don’t find a ton of vacancies. 


  • With shorter leases, you will find yourself having to turn the property over more often for new tenants. The time and money spent on marketing the property, showing it and screening tenants will happen at a more frequent rate with short-term leases. This can be damaging to your bank account. 
  • The tenants you will house with short-term leases are a greater risk than those on longer leases. You may not be able to do as deep of a tenant screening for short term – especially if it is a corporate rental. And, the transient nature of these tenants tends to bring a lack of desire to care for the space. 
  • There is no guarantee of having your property occupied by tenants once the short-term lease is up. This could potentially leave you with vacancies – and a monetary loss. When it comes to 

Offering a short-term lease can definitely land you a great deal of income in a relatively short period of time. Remember that by choosing to rent on these terms, your risk also increases. Do your research of the market, establish your relationship with a property management company, and decide how you can best screen your tenants to prevent damage to your investment. 

Short-term leasing is not for every landlord – or for every market. But, if you do your due diligence and follow through, you may just reap some rewards. Shlomov, a managing partner at ALH|Podland Realty & Rental Homes Property Management is the author of many articles on Landlording, Property Management, and Real Estate Investing. A residential builder in the state of Georgia since 1999, Marina is an investor herself. Her property management company is intended “For Investors” and “By Investors” for a simple reason – she knows what investors’ goals are and she works hard to reach their goals. In her spare time, Marina likes to spend time with her family, friends, garden, read and travel. Check her out at You can find Marina’s articles and comments at @rentalhomesatl on Twitter, on FacebookGoogle+, Blogger. and YouTube,Bigger Pockets andREI Club and LinkedIn.

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