Any renter knows that a new apartment comes with a new lease agreement. It’s just a part of the apartment rental process. Once you find the perfect apartment, you’ll sit down to finalize the paperwork, including the lease. Once you finalize this step, the apartment is yours!
Before you get too excited about moving in and decorating though, it’s important to understand the lease before you sign on the dotted line. This is your ultimate guide to lease lengths for your next apartment rental.
What is a lease?
Let’s start with the basics. A lease is a legally binding contract between a tenant and a property owner. Tenants agree to pay rent in exchange for leasing an apartment unit for a certain period of time. The lease defines everything from the rent rate to the move-in date.
Leases outline exactly how much money you’ll owe for each month’s rent and it also states how much you need to pay for a security deposit and other apartment application fees. Paying rent and security deposits are some of the rules agreed upon when you sign the lease and before you move in.
All apartment complexes and property managers will require tenants to sign a lease. Landlords want to rent to people who can pay the cost of the property each month and are willing to agree to the legally binding lease.
How long is a lease for an apartment
Now that you understand leases at a high level, let’s talk about lease lengths. The length of the lease can vary, depending on the landlord or property owner. Before signing, you need to understand how long you’re signing for as you’re legally bound to the lease terms.
Leases range from short-term leases to long-term leases. Some landlords allow you to rent on a month-to-month basis while others require an annual commitment. Term leases will be in the lease document and will designate how long you’re required to stay in the lease. You can break a lease, but you’ll often see hefty fees involved in terminating your lease early.
Depending on where you are in life and what you’re looking for when it comes to renting, you’ll want to decide what lease terms are right for you. Once you know your living situation, you can sign the lease agreement that is right for you.
How long do most apartment leases last?
Most apartments will offer a term lease that is at least a year. Property managers want tenants to sign a year-long lease because it guarantees they’ll have a tenant renting the unit and paying rent for 12 months. The property manager is responsible for filling units so a longer lease is appealing to them.
However, you can find a variety of lease lengths, depending on the apartment complex and the landlord. You can also negotiate your lease terms when it comes time to renew the lease agreement.
What is the shortest time you can lease an apartment?
Lease terms vary but short-term leases are anything shorter than one year. Anything more than one year is a long-term lease. Regardless of the lease term, you’ll still pay a security deposit and monthly rent for all rentals.
You can find a short-term lease that ranges anywhere from 30 days to three months to six months. Short-term rentals will outline the lease term in the many pages of the agreement itself.
A six-month lease is short term but the shortest of all is a month-to-month lease or a 30-day lease agreement.
What is a month-to-month lease?
Month-to-month leases allow the new tenant to decide each month if they want to renew and keep renting. Though this agreement provides flexibility to the renter, it will typically cost more. Landlords have to continually find new renters for the open apartments so a month-to-month lease is a riskier option for them.
Usually, with a short-term lease, you’ll need to give the landlord 30-days’ notice before you vacate the apartment. For month-to-month leases, this means you need to know if you’re staying into the next month when you sign the short-term lease.
Basically, you’ll need to plan 60 days out when you want to move in and move out before signing anything. Otherwise, you might owe fees for breaking the lease early.
With other short-term leases, you’ll still need to give the landlord a heads-up before you plan to move out. Remember, the lease is a legally binding contract so make sure you understand the fine print before signing it.
Reasons to choose a short-term lease
So, why would people choose a short-term lease? Here are a few pros and cons.
Pros of a short-term lease
- You can try a new city — Short-term leases are great if you’re considering moving to a different city. You can sign a month-to-month lease without having to commit to an extended time in that location. If you like the city, great! You can consider signing a long-term lease after your first month is up. Or, if you don’t love where you live, you can find a different city or apartment.
- You can move out into your first apartment with low risk — Your first time moving out is a big, intimidating decision so avoiding a long-term lease is a good idea if you’re unsure about living on your own. By signing a shorter lease agreement, you can test if you like living on your own or not.
- You can rent furnished apartments — If you travel a lot for work or are a digital nomad, then a short-term lease with furnishings included are a great option. You can move from place to place fairly easily without having too many objects or commitments tying you down.
Cons of a short-term lease
- They cost more — Because short-term rentals are riskier for a landlord, they typically cost more. You might see a ding in your bank account because the fees, like rent and the security deposit, are higher.
- You’ll need to plan your next move frequently — A short lease term means you need to have the next move already planned out. Thirty, 60 or 90 days will come and go quickly, so you need to think ahead about if you’ll stay or go. This is stressful for some people who don’t like constantly planning the next move.
What is the longest lease term for an apartment?
If a short-term lease is anything under 12 months, then a long-term lease is 12 months or more. The lease term will vary, but you can find leases for 12 months, 15 months or even 24. It’s up to the landlord to determine the exact lease term.
Reasons to choose a long-term lease
A long-term lease is a good option for renters who know they want to stay in one place for a longer period of time. These lease agreements provide:
- Stability — When you stay at one apartment for a while, you have more stability because you’re able to plant roots and know you won’t have to move frequently.
- Guaranteed place to live — Unless you’re evicted, you have an equal housing opportunity to find a place and stay there through the length of your lease.
- Ability to budget — Knowing that you’ll be in the same place for a set amount of time, you can budget how much you’ll spend in rent for the length of the lease. This can help ease financial stress.
- Building a relationship with the landlord – As you stay in one place because of a long-term lease, you’ll build rapport with your landlord, which is a nice benefit for when you move in the future to have a landlord reference on-hand.
What you need to know about monthly rent and an apartment lease
When you’re apartment hunting, you need to consider everything from location to the cost of rent to lease length. Regardless of the lease duration, you need to know that state laws view leases as legally binding contracts. So, don’t sign anything before you fully comprehend the ins and outs of the lease.
Do you understand the lease terms so you know what you’re getting yourself into? Before you dot your “i’s” and cross your “t’s”, ask yourself these questions:
- How much can I spend in monthly rent?
- Can I afford the security deposit and other fees?
- How long do I want to live in one place?
- Do I want a month-to-month lease or a year-long lease?
Truthfully answering these questions for yourself will help the process move smoothly and ensure you’re moving into the place of your dreams and signing the terms you are comfortable with.
Source: rent.com