There are many things before you consider to buy the residence for yourself. Be it a big dream house or a small apartment or a brand-new car that you anxiously desire for, there are certain things that you will require to consider. There are always few cons which comes with it. First few things include the budget that you have in your mind to get a home. Most people choose the option of getting home on leasing.
Now you must be familiar with the short term and long-term leasing. Mostly, people pick long term as it involves lesser risks but for the short term, there are some disadvantages that you might encounter while processing for a home on leasing.
Eicr certificate cost are bringing few points for you which can be counted as risks involved for short-term residential lease.
Short-term lease Less profitable than the long-term lease:
Leasers worry about the fact that they have to search for the residents over again after the short-term lease is finished. As leasers count on the profits that they make from their residential properties. Their calculations for the profit decreases as they go for the short-term lease. That’s one of the reasons why short-term lease is not a good idea to go for many leasers.
Your credit score runs over and over again:
When you choose to go from lease to lease allows companies to run your credit report and this can be impediment. It also becomes harder for the leaser to approve the short-term lease as they think that temporary residents are of greater risk.
Changes in terms upon renewal of lease:
Leasing companies has flexibility for short-term leasing and this also counts as its disadvantage as they increase your lease after the term ends and if you decide to stay. Moreover, when you renew the short-term rentals, it comes with the changes of terms. For instance, you may lose some of the advantages and you may have to put down higher deposit which again is not an ideal situation.
In a nutshell:
It has been observed that there can be major setbacks of short-term lease sometimes for the residents as there is any damage to the property, the leaser might claim if it doesn’t include in the agreement.
As for those who still see the positive side of short-term leasing as somewhat flexible and as an adjustable factor, they choose it and they carefully go along with the disadvantages of it irrespective of what it has or not. People often intend to see the brighter side of short-term lease as they are able to own the property fast and more efficiently if things are smooth for them otherwise it’s better to stay with long-term leasing plan.
There is a psychological impact behind leasing that until you own the thing its not totally yours which is again a worrisome thing as you don’t get the sense of ownership immediately. In short-term it gets even more difficult for the renter to get the sense of the ownership.
The wise advice is to count long-term as they are more cost effective and less risky which is the reason that mostly it is the way which is chosen by majority in various parts of the world.