Pros & Cons of Long Term Rentals

 

A long term rental accommodation is usually let out to tenants over a period of a year, usually more than half that time. In a normal situation, a long term rental agreement would be used by families and individuals who can’t afford to buy their own house outright. Usually, such rental properties come furnished with the necessary furniture or appliances. Long term rentals in the United Kingdom are mostly known as home renting, or serviced apartments. They are perfect for stay-cationers, holiday makers, or for those who prefer to live in a rented accommodation for the whole year, or for any duration of time. In fact, a large number of people choose long term rental properties in Britain because it is much cheaper than buying property and will also save them money in the long run.

However, not everyone is comfortable with the idea of long term rentals in Britain. There are, however, a number of pros and cons associated with them that you should consider before signing up for one. So, what are the pros and cons of long term rentals?

One of the pros is that it offers consistent income; a tenant who signs up for a long term rental agreement will get a steady monthly rental income. In this kind of arrangement, a tenant will get his payment for the entire year, or for the same amount every twelve months, regardless of how long he or she signs the agreement for. In this way, a tenant is able to maintain and build up his credit score at the same time. In a nutshell, consistent payment is key for long term tenants. Learn more information about phuket long term rental.

Another pro of a term rental agreement is that landlords don’t have to worry about a large deposit. This means that the landlord doesn’t have to go through the hassle of collecting a large check every month. Landlords also avoid the extra paperwork and procedures that are involved when someone has to pay a large lease deposit every month.

One con of this type of agreement is that tenants will have to pay a ‘deposit’ every month. The ‘deposit’ is the money that a tenant needs to pay the rent for the first twelve months of the lease. However, there are some long term rental contracts that provide for no deposit period; it may only be required that a tenant pay a one-off notice of intent to vacate. In these cases, if the tenant doesn’t pay the rent for the month, then the landlord has the right to apply penalties and legal fees. This can be expensive for tenants and may reduce the attractiveness of a short term lease.

Another con of long term rentals is that they offer very short terms. They may only last for two to four weeks in a row. Therefore, it may be difficult for renters to find a property that they feel is right for them. In these situations it is important for renters to find a property that allows them to sublease or lease out their rights.

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