Short term vs. Long term

Now that you’re ready to list your rental property on Rooof.com, it’s time to consider who your future tenant might be and how long they might be staying.

Not every tenant is looking to stay for the long term, so it’s important to think about whether you want to target your rental house or apartment to tenants who are in it for the long haul or not. There are benefits and disadvantages to both long-term and short-term rentals, and each type of tenant might be looking for something a bit different.

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In cities across Canada and the U.S. where there are colleges and universities, you’ll find student tenants of both varieties. Some hope to stay for the entire duration of their studies, while others will be likely to move around. You can count on the latter being more common, and you might even find that students will only stick around for 6 months at a time.

Potential short-term renters include:

• Students
• Workers on a contract
• People who are new to the city and haven’t found their ideal neighbourhood
• Groups of roommates, or individuals seeking roommates
• Subletters

We could also add vacation renters to this category, but it’s a whole different ballgame so we’ll skip it for this blog.

These short-term renters might have a slightly different wishlist when it comes to their future home. They might be more interested in:

• Proximity to school
• Proximity to their contracted workplace

And most importantly, short-term renters may not be keen to sign a lease, preferring not to be locked in for any specific period of time so they can move around. If this is OK with you as a landlord, great! Both you and the tenant will benefit from a month-to-month agreement.

Beware that skipping a lease could mean your renter might be in and out in a matter of a couple of months. This could leave you as the landlord searching for a new tenant again in the near future and also leaves you open to the risk that your property might go vacant for a while. On the other hand, some landlords prefer month-to-month rentals because it makes it easier to part with problem tenants.

An alternative is to offer the tenant a six-month lease.

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Long-term renters on the other hand might fit into a completely demographic from the short-term variety. Often they’re older with steadier jobs, or they might be families looking for a place to settle. This certainly isn’t always the case – there are plenty of young and unattached renters who plan to stay for a year or more in the same spot.

Or they might be people riding out this economic instability in North America before purchasing property of their own.

• These tenants might want:
• Proximity to schools for the kids
• Playgrounds and services, such as grocery stores, nearby
• A bit of distance from the bustle of the city
• Parking
• Extra bedrooms to have friends and family come visit

Long-term renters will likely be willing to sign a one-year lease, but you may also want to agree on a six-month lease, giving both parties the flexibility to leave, or re-sign if everything goes well.

Happy renting, for the long-term or just for now.