After you are able to find a property you like and get approved the next thing to consider is how long you would like to live at that rental property. There are advantages and disadvantages to signing a one year lease or a two year or longer lease. Below we will discuss these to help you decide which option is right for you based on your personal situation. If you rent a property through a real estate management services company they can help you decide which option may be better for you.
- Choosing a one year lease: One year leases are the most popular type of lease as a year is generally long enough for you to know if you like the rental property and area of the property you are renting. If you end up not liking the property a one year lease gives you the flexibility to move and try out a new rental property. If you are unsure about your job situation you may want to consider a one year lease.
- Choosing a two year or longer lease: Signing a two year lease does commit you to a rental property longer, however if you do not like moving every year this option may be better for you. The biggest benefit of signing a two year or longer lease is that if the property owner wants to raise the rent at the property they will have to wait much longer to do so. The savings could be significant if you are in a rental market with expected rent increases. A longer lease also means you do not have to move as often, which is a big selling point.
Deciding on if it is better to sign a lease for one year, two year, or longer lease depends on your situation and personality. If you like to move and live in different locations and types of homes then signing a one year lease is for you. If you are tired of moving and would like some stability in where you are living consider signing a longer lease. Either way one must consider the negatives and positives and make the best choice based on their situation.