How Short-Term Leases Help During House Shopping
So, you've decided it's time to stop renting and start looking for a home to own. You may be in for a lengthy search, but while on the hunt, the last thing you want to worry about is how long you can stay in your current place.
In order to not get stuck breaking a long-term lease or having to move out before you're ready, consider signing a short-term lease. You may have to move to another apartment at the start of your house hunt, but a short-term lease offers you the kind of flexibility you need when you're not sure when you'll be ready to move.
There are also advantages to a short-term lease if you're a current homeowner looking to find your next home. In either situation, the convenience of shifting to a short-term lease has its benefits.
Put time on your side
House shopping involves the alignment of a variety of factors. You want a place that's the right size, an affordable price and in the right neighborhood. Getting it all in a single home that you really like can take time, and you don't want to feel rushed into making a decision because your current lease runs out.
There's no expiration date when signing a short-term lease. You don't have a certain date when you have to leave. This type of lease often lasts until you're ready to go, operating on a month-to-month basis, providing you with the flexibility to wait for just the right home to purchase.
Additionally, with a short-term lease, you're often only required to put in a 30-day notice to end the lease. This lines up perfectly with the average length of time a home closing takes. You won't have to give notice until you know for sure you have a home to purchase. You also won't have to work within a set time frame to get to closing day.
Get the freedom to look in the off-peak season
According to Zillow, spring is the best time for home buyers. It's often when there's the most inventory. However, many long-term leases go through August or even the end of the year. This would mean breaking your lease, incurring an additional cost if you were to house hunt at the optimal time.
With so many costs associated with purchasing a home already, you don't want any extra fees, especially when a short-term lease eliminates that cost. You can remove the worry of aligning your lease expiration date with your closing date when you opt for a month-to-month lease, and often, the realtor helping you find your home can help you find apartments available for short-term leases. They may even review your lease to ensure the terms are appropriate for your purposes.
Make a bigger down payment
If you're already a homeowner looking to upgrade your living situation, having the money from your current home to put toward a new home can be essential. It's not often, though, that closing schedules align perfectly. You may end up selling your current home quicker than you can find a new one.
Allowing yourself to have an interim period by signing a short-term lease gives you the time to keep looking for your next home while holding onto the cash from your previous home sale. This can make it easier to cover the down payment and closing costs associated with the purchase. You may also even save a little money if your rent is less than your previous mortgage payment.
Not having to worry about remaining in your current living situation allows you to turn all your attention to where you'll live next and what forever home you'll purchase. This often means finding an alternative residence for just a short period. Flexibility is just one of the reasons why a short-term lease might be the right decision for you.