Over 2 million people live in Chicago, meaning that residential property is always in demand. With that said, people are often inclined to sign long-term lease agreements.
But what if you sign a short-term agreement? Are there benefits to a short-term lease agreement?
That's what we're here to look at today. Read on to find out more about why short-term lease agreements might be worthwhile for Chicago residents.
What Are Short-Term Lease Agreements?
Short-term lease agreements usually describe any lease agreements that go for six months or shorter. The most common type of short-term lease agreement you'll see are month-to-month agreements.
There are, however, many tenants who sign weekly agreements or leases that go for more arbitrary time periods. The big factor that differentiates short-term and long-term agreements is flexibility.
Short-term agreements provide both the tenant and the landlord with more flexibility. Many of these agreements are subject to change, and landlords often agree to any changes so long as they have proper notice beforehand.
So What Are the Benefits of Short-Term Rental Agreements?
If you own rental property, short-term lease agreements give you the flexibility to change certain aspects of the lease. This includes changing the rent itself, how often you can change the rent, and other important lease terms.
For short-term rental agreements like monthly leases, landlords have the freedom to change the rent frequently. They have to notify the tenants in a certain period of time based on state and city laws.
If a tenant has lived in their unit for six months but less than three years, you're required to let them know about a rent increase within 60 days of it taking place. That's changed to 120 days for longer-tenured tenants.
Sometimes landlords want to change the terms of their tenants' leases, such as pet policies or security deposits. Short-term leases allow them to do so by providing a new lease for tenants to sign.
Expiration of Terms
When long-term lease agreements end, it's common for landlords to switch to a short-term rent agreement in its stead. This gives both the tenant and the landlord time to assess and see if they want to make any changes.
Flexibility for Tenants
This type of lease agreement is also beneficial for tenants, as they're afforded much more flexibility. Instead of being tied to an agreement that's hard to change, they agree to a shorter one with more leeway.
Depending on their living situation, a short-term agreement might be useful when they need to move out quickly. It negates any complicated paperwork when they move from one property to another.
Month-to-month or week-to-week agreements are a huge plus for tenants looking for vacation rental homes. This is good for landlords who use their properties as such since they can charge higher rent based on the season.
Understanding Short-Term Lease Agreements
Short-term lease agreements benefit both tenants and landlords as long as they understand all the key components. Use this guide to help you understand how these agreements work for your property.
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