Short-term vs. Long-term Tenancy Agreements

At Powell & Co. one of the first things we discuss with you as the homeowner is if you are looking for short or long-term tenants. Both options have their benefits, but understanding the key differences can help you figure out what option will suit you and your property the best.

Short-Term Tenancy

A short term tenancy agreement typically runs for less than six months and is ideal for people who want to rent out their property on their temporary basis only. This is perfect for seasonal rentals or properties that you the owner want to live in part time.

Key Benefits of Short-term Agreements:

  1. Increased Flexibility: With the ability to rent out your property on a temporary basis, you do not have to commit to a long-term lease, creating the space and time needed for any renovations you might want to do, or even to live in the property part-time yourself.

Things to consider with Short-term Agreements:

  1. More Work: Short-term tenancy agreements can require more work on the part of the owner/property manager as they will need to find new tenants more frequently and therefore perform more inspections and maintenance checks.

Long-Term Tenancy

Long-term tenancy agreements, on the other hand, tend to run for a year or longer and are ideal for landlords who want to rent out a property on a more permanent basis. It is the perfect option for owners who want a stable, reliable income stream from their rental property.

Key Benefits of Long-term Agreements:

  1. Stable Income: You can count on a reliable rental income for the duration of the lease, which can help you plan your finances more effectively.

Things to consider with Long-term Agreements:

  1. Less Flexibility: Because the longer-term agreement means you are committed to renting the property to the same tenant for at least a year, there is less flexibility if your situation changes.

In conclusion, both short-term and long-term tenancy agreements have their pros and cons. As a professional property manager, it’s important to evaluate your rental property and your specific goals in order to determine which option is best for you. If you’re looking for flexibility and higher rental rates, short-term tenancy agreements may be the way to go. If you want a stable income stream with less turnover, long-term tenancy agreements may be the better option. Ultimately, the decision will depend on factors such as location, property type, rental market, and your own personal preferences.