Rolling Contract Rental Property: Benefits and Downsides
Renting a property on a rolling contract basis is becoming increasingly popular. A rolling contract means that the tenancy agreement continues on a monthly basis, with no fixed end date, until either the landlord or tenant gives notice to terminate.
This type of arrangement offers many benefits, such as flexibility and lower costs, but also some downsides, including less security and potentially higher rents.
In this article, we will explore the benefits and downsides of renting a property on a rolling contract.
Benefits of a Rolling Contract Rental Property
Flexibility: One of the most significant benefits of a rolling contract is flexibility. The tenant has the freedom to move out of the property with proper notice, which is usually just a month. It is ideal for people who are uncertain about their long-term plans, such as students, young professionals, or people who are relocating for work.
Lower costs: A rolling contract rental property can be a more affordable option than a fixed-term tenancy agreement. Most landlords do not require a deposit, and there are typically no fees for renewing the contract. The tenant also saves money on not having to pay for utilities, such as gas, electricity, or internet, that may be included in the rent.
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Ease of finding a property: Rolling contracts are more accessible to secure, as landlords tend to be more forgiving of factors that would dissuade them from offering a longer-term lease, such as poor credit history or a lack of references.
Downsides of a Rolling Contract Rental Property
Less security: The most significant downside to a rolling contract rental property is less security. The landlord can end the contract at any time by providing a notice period of one to two months. Although this also means a tenant can end the tenancy just as easily, it does not provide the same sense of security as a longer-term tenancy.
Potential for higher rents: Since the landlord has the option to increase the rent with just a month`s notice, the tenant may face higher costs than they would in a traditional, fixed-term lease.
Unpredictable living: The unpredictability of a rolling contract may be stressful for some tenants, as they can never be sure how long they will be able to remain in the property.
In conclusion, a rolling contract rental property can be an excellent choice for those who value flexibility and lower costs over security and predictability. However, individuals who seek long-term stability and security may prefer the traditional, fixed-term tenancy agreements. As a tenant, it is essential to carefully consider your needs and circumstances before deciding if a rolling contract rental property is right for you.
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