Over the past decade, there has been a rising trend where more people are opting for long-term rentals instead of buying homes. Some tenants will stay in a location for a year or two, while others will remain in a home for several years.
What is driving this rise in long-term renting? How is the real estate industry accommodating these individuals and families? Learn more about the state of rentals and the benefits of a long-term lease.
Rentals are less stressful.
Owning a home is a commitment. You are responsible for everything from broken appliances (like a leaky dishwasher) to storm-proofing the property ahead of a hurricane or blizzard. When something goes wrong, it’s up to the owner to fix the issue. Home repairs can be costly and time-consuming.
The stress and work that comes with homeownership are actually driving some people toward long term rentals. When you have a problem as a renter, you can simply call the property manager and request a repair. It’s up to the landlord to foot the cost of the repairs and find contractors to complete the work. For Americans with fast-paced lives who don’t want to drop everything for a leak or blown fuse, opting for a long-term lease may be a better option.
Long-term rentals offer more flexibility.
Modern workers are increasingly remote. Even before the COVID-19 pandemic, digital nomads traveled the world and stayed in different cities or countries for a few months at a time. These professionals might stay in an Airbnb or sign a rental agreement in a condo for a few months. Some nomads even look into long-term car rental if they plan to stay in a city that doesn’t have reliable public transit.
Long-term rentals are solutions for people with wanderlust. Families can stay in rental homes during the school year and then travel the country in the summer. Business travelers can find vacancies in places that feel like home – preferring one-bedroom condos with kitchens and laundry over cramped hotel rooms. Plus, the long-term rental agreements are often more favorable than by-night hotel reservations.
More tenants want furnished spaces.
Whether the renters are weary business travelers or self-employed digital nomads, more tenants are looking for furnished houses or units to move into. Renters have more flexibility when they don’t have to pack up their bed, kitchen utensils, and decorations every time they move. By renting a furnished space, they can enjoy all of the creature comforts of home and then move across the country in just a few months with only a suitcase.
The demand for furnished spaces is also good news for future landlords. People who already have vacation homes and investment properties can also enter the rental market Snowbirds that live up north in the summer can rent their two-bedroom condos to families who want to spend the summer on the beach.
Landlords can enjoy tenant stability.
Residents aren’t the only ones of benefit from long-term rental agreements. Owners can also enjoy the stability that comes with renting their space to someone who will stay for a few months. This provides a steady stream of passive income and is less work than listing a property on a vacation home site.
Instead of working with new guests every few days (and constantly cleaning the property), landlords can use long-term rentals to keep their space occupied for a few months a time.
As a whole, the pros outweigh the cons when it comes to signing a lease. The long-term rental market doesn’t seem to be slowing down. Property owners can jump on this trend by offering great rates on their vacation houses or investment homes. Both tenants and the owners benefit from this trend.