Corporate apartments are temporary living arrangements, most especially for businessmen who are always travelling. The term of lease is flexible.
Term of lease means the length of the rental. It is one of the terms and conditions in the document of lease. It includes the beginning date and a specified period of stay, such as a month-to-month or a full year. It also includes the ending date. Although some cities have laws prohibiting less than a month rentals of housing, most corporate apartments allow businessmen to stay for a week or two, because that is usually the length of time they attend business conferences or conventions.
Pros of Short-Term Corporate Apartment Leases
- Most businessmen renting corporate apartments prefer shorter-term leases because of the flexibility it provides for different types of possibilities such as a shortened conference, an urgent call from home or another work assignment in another place.
- It gives businessmen more mobility. As long as they have paid in advance the agreed rental, they can choose to vacate it anytime, even before the expiration of the contract of lease.
- Most short-term corporate apartments are fully furnished.
- Businessmen have little commitment to make on the unit. If they decide to move, they will not be paying any penalty for breaking the lease.
- Most corporate apartments include utilities in short-term rentals. If the owner underestimates the renter’s use of facilities, that will mean a significant savings on the part of the businessman.
Cons of Short-term Corporate Apartment Lease
- Short-term corporate apartment lease is slightly higher compared to standard apartments because most of them are fully furnished. The owner has to invest more time and effort preparing the unit for the next renter. There is cleaning to be done, maintaining the appliances and furniture and other costs associated with the preparation.
- Some property owners refuse to extend the length of lease should the renter decide to remain for an extended stay. Moving is always stressful and it could be exhausting having to move again after a short stay in the apartment.
- Most apartment owners run a check on a prospective renter’s credit report. Multiple checks do not look good to reporting agencies and will always result to a low applicant’s credit score. Moving several times in a year will not look good to lenders because it could be an indication that the person failed to pay the bills or does not have a stable income.
