UNITED STATES—Renting property for short periods rather than signing on to longer lease agreements is more commonplace than ever, with a number of factors influencing this trend both nationally and globally.
Here is a look at why more people are choosing rolling monthly contracts for their housing, and why existing landlords and prospective property investors should take notice.
For residents and landlords alike, the main reasons that short term rental agreements are more appealing than ever is that they provide both parties with immense flexibility.
Landlords can benefit from the ability to stop leasing their property in a short timeframe, whether to allow for a quick sale if they want to cash in their initial investment, or in order to extricate themselves from problem occupants and find fresh tenants to take their place.
Meanwhile renters can avoid the hassle of being hemmed in by a long term lease which might see them stuck in the same place for a year or more, even if their circumstances have changed and they would rather move on.
Signing a residential lease agreement
The other perk of monthly rental arrangements is that they are comparatively straightforward from an administrative point of view.
Generating a residential lease agreement form is easy with online templates available, and the digital tools also mean that connecting landlords with tenants who are looking for the same thing is a breeze.
The paperwork also removes any ambiguity from the arrangement; both parties know that this is a short term lease, with all the perks and pitfalls that this brings with it.
Jumping on the app-powered property rental trend
In the past few years it has been impossible to ignore the rise and rise of property rental apps like Airbnb.
These services have transformed the rental market, not just appealing to holiday makers looking for new places to stay that are not just cookie cutter hotel complexes, but also attracting people who want short term rental opportunities without the need to jump through all of the hoops involved in the traditional private rental market.
Whether you are honeymooning in a tropical paradise or trying to find a place to stay for a week or two while working in a distant city, short term rentals offered via these apps are the obvious choice. You can organize affordable, perfectly positioned accommodation in a matter of minutes, without needing to apply for the opportunity to rent an apartment or home and plow through endless paperwork and background checks.
Complications and concerns
Of course this state of affairs is not all good news, because under the surface there are some side effects and broader concerns to take into account.
Firstly there is the way that the rise of short term rentals has impacted the property market as a whole, both in terms of the way people are investing and the kinds of buildings that are being planned and produced to accommodate the trend. In many areas apartment blocks are being taken over by Airbnb hosts, ousting regular buyers and pricing out those who might otherwise have chosen to live in the area.
Then there is the general instability of the market, as exemplified in the past year during which the pandemic created chaos in the lives of billions. Both renters and landlords are at risk in this context, and regulators have yet to truly catch up to help out those involved.
Whether short term rentals will remain en vogue indefinitely, or will eventually subsided from their current peak, remains to be seen, but it is certainly a trend worth watching.