Long term rental and seasonal rental contracts

DEFINITIONS

First, it is important to note the difference between lease agreements and rental agreements. Although both terms are often used synonymously, there are quite different from each other. Lease agreements or contracts, refer to set long term rent contracts, which could be for six months, a year even five years. It is usually not subject to changes in rental prices as often as rental agreements may be. Rental agreements mean rent contracts that are based on a month to month basis, more susceptible to change in rent costs among others. As a result, long term rental agreements refer to a sort of long term moment by moment rent contracts, while Seasonal rental contracts involve the same time by time rental agreements both only for a specific time, which could be very short (like one month during Christmas) or for a longer time.

WHAT ARE THE CHALLENGES OF A LONG TERM RENTAL CONTRACT?

Having understood what a long term rental contract refers to, it is time to understand what it involves; First, any long term contract, must include in it, details as to the identities of both the landlord and the tenant signing the agreement, a description of the property( specific details as to what it has e.g rooms, swimming pool etc) as well as its address, it will also include the duration within which the tenant is expected to stay in the property, agreed rental costs, conditions as to consequences of late payment, miscellaneous costs, it could even have conditions for the breach of such contract by either the ‘landlord’ (trying to evict the tenant before agreed time) or ‘tenant’ (rescinding the contract before its duration is due)

A long term rental contract ensures that those who enter into them, can benefit from the stability that it may provide as to the occurrence of rental price hikes, new conditions upon renewal of the contract among others. The landlord can benefit from a steady rental payment over a long duration of payment, while the tenant can benefit from stable prices especially where he wishes to stay around the location for a long time.

However, some challenges of this form of rental contract, is that where the tenant for example, decides to rescind the contractual agreement between himself and the landlord, he is to pay penalties on time defaulted. (About a month’s rent for every year he would be defaulting in staying) In other words, where you probably imagined you will spend a lot of time in an area and then due to unforeseen circumstances have leave earlier, there are penalties for such inconvenience to your landlord, among other things.

WHAT DOES A SEASONAL RENTAL CONTRACT INVOLVE?

If on the other hand, you are not so sure, that you will spending a lot of time around a certain location, seasonal rental agreement is good news! With a seasonal rental agreement, you don’t have to spend too much time at a property. Especially if you are a very mobile, ‘don’t stay anywhere for long’ kind of person.

A seasonal rental contract will also have in its draft, the same information on a long term rental agreement, and will also include the jurisdiction under which, contractual disputes will be settled.

A seasonal agreement however, is very much subject to changes during renewal. This could include spike in rental costs, new conditions to follow, among others. Such that renewal may be quite inconvenient.

CONCLUSION

So all together, and simply put, Long term rental contracts and seasonal contracts differ as to the duration within which it operates. And is suitable to those very clear as to the duration within which they want to spend i8n a location.