When looking into renting a condominium or looking into renting out your condo, one of the biggest questions you need to consider is this: how long will the lease be. There are several factors to consider when determining your lease terms and conditions. While a lease will generally last anywhere from 3 to 36 months, this number will depend on a number of things.

Standard Lease Times

A lease is an agreement between the condo owner and the renter. It consists of a written contract that explains how much the rent will be each month, how long the terms are in place for and what other terms come with renting the condo. A short term lease is usually for three to six months while a long term lease lasts longer than one year. A standard lease agreement will be for 12 months. Keep in mind that these figures are for traditional rental insurance agreements, not for short term holiday units or for commercial leases.

When the time period of the lease is up, the tenant has two options. He can continue to live there or he can move out. If he does decide to live there the condo owner can make up a new lease or let him keep living there on a month to month basis. If a new lease is made up, the condo owner may want to look at changing the rental amount to reflect the changes in the market. You may want to add an extra $15 per month to the rent to reflect the higher cost of living and real estate prices.

Choosing your Lease Agreement Length

As a renter, when it comes to signing a lease you need to be committed to stay in that one spot for the time agreed on. If you are a traveler then six months may be too long; if you are a student then a three month lease may not be enough. It is your responsibility to pay the rent each and every month as per your lease agreement.

As a condo owner you need to think about what lease amount would benefit you the best. Having a long term lease in place means that you will have a monthly income coming in at on a regular basis for however long the lease is in place. This can be a comforting thing and will save you having to interview new tenants every three or six months after each lease is up.

However, if you have a lease that is for too long, you could be missing out on some money each month if the market price has risen. After all, if you have been leasing your condo out for $1000 a month for the last five years, there is a pretty good chance that other condos in your price range are now being rented for more.

You also need to think about what type of tenants you want in your condo. If you are renting your condominium out as student accommodation, then six to eight months if pretty standard as a full year of school only lasts for eight months. If you are renting it out to a family then one year is a good amount. If you are using your condo for accommodation for travelers or as a share accommodation, then you might only want to have a lease in place for one to three months.

At the end of the day, when it comes to lease times, the lease agreement terms, including the length, is entirely up to the condo owner. Potential tenants can either sign it, or walk away.

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