Guide to Short-Term Rentals: What You Should Know Before Signing a Lease

What is a short-term-rental?

A short-term rental typically refers to a rental agreement that lasts for less than a year, often ranging from a few days to several months. 

Technically, there’s a difference between short-term-rentals and mid-term-rentals. 

Short-term rentals: 

• Last for less for 30 days
• Rates may be charged by days, weeks or a flat rate for the month.
• Tend to have a higher per-day rate

Mid-term rentals:

• Between 1-12 months in length for the lease
• Measured in lease terms of months
• Owners are often not required to obtain a short-term rental permit if leases are over 30 days.

That said, somewhat confusingly, you may see both types of rentals marketed as “short term rentals”

Overall, these types of rentals are more flexible than traditional leases and cater to a wide variety of needs, from vacationers to business travelers and students with internships to those relocating to a new area temporarily.

Types of short-term rentals

There are a number of different types of properties that cater to different types of short-term renters. 

1. Vacation rentals
• What it is: Typically found on platforms like Airbnb or Vrbo, vacation rentals are often fully furnished homes or apartments rented out for short stays (from one night to a few weeks).
• Who it's for: Ideal for tourists or travelers looking for temporary housing in popular destinations.
2. Corporate housing
• What it is: These are fully furnished apartments or condos rented to business travelers or professionals on short-term work assignments. The terms can last from a few weeks to several months.
• Who it's for: Ideal for employees or contractors relocating for work or on temporary assignments.
3. Sublets
• What it is: Sublets occur when the current tenant rents out their apartment to someone else, often with the permission of the landlord. Subleases may or may not be furnished and are usually for a defined period.
• Who it's for: Renters who need temporary housing and want a relatively straightforward rental arrangement.
4. Extended stay hotels
• What it is: Extended stay hotels offer suites with kitchens and more living space than traditional hotel rooms. They cater to people needing housing for a few weeks to a few months.
• Who it's for: Ideal for those who prefer hotel-like amenities but need more space and a homier feel.
5. Short-term and mid-term leases from landlords
• What it is: Some landlords or property management companies offer short-term lease options (usually 3-6 months). These may be in standard apartment buildings or multi-family homes.
• Who it's for: Individuals needing flexibility in their lease term, such as those relocating or waiting for long-term housing.

Things to look out for when renting short-term

Since you’re not planning to stay long-term, it can be tempting to not pay attention to the fine print before signing up for a short-term-rental. However, it’s still very important to pay attention to what you’re paying for and what the conditions are. Some short-term rentals, even if booked through a platform may requre you to sign a rental agreement.

Here are a few things worth considering. 

1. Lease terms and flexibility
• Read the fine print: Pay attention to the duration of the lease and any penalties for ending the lease early.
• Cancellation policies: Particularly with vacation rentals or sublets, cancellation policies can vary significantly. Even the best laid plans can change, so it’s important to make sure you understand the terms before committing.
2. Costs
• Higher rent: Short-term rentals often come at a premium. Daily, weekly or monthly rates might be higher than traditional long-term rentals. Usually the longer the rental period, the lower the rate will be. 
• Additional fees: Be aware of cleaning fees, utilities, parking, pet fees or service fees, especially for vacation rentals or corporate housing.
3. Security deposits
• Check for refundable deposits: Understand whether the deposit is refundable and under what conditions you might forfeit some or all of it. Security deposits for short-term rentals can be higher because of the shorter timeframe.
4. Condition of the rental
• Inspection: If possible, inspect the rental before signing the agreement. Ensure the unit is in good condition and that appliances, plumbing and heating/cooling systems work properly.
• Furnishings: Ensure the rental includes everything you need and in the expected condition if it’s advertised as fully-furnished.
5. Utilities and services
• Know what’s included: Clarify if utilities (such as water, electricity, internet or cable) are included in the rent or if you need to set them up and pay separately.
• Maintenance and repairs: Understand how maintenance issues will be handled, especially for short-term leases where landlords may be less responsive.
6. Local regulations
• Rental restrictions: Some cities or neighborhoods have regulations regarding short-term rentals, especially vacation rentals. Research local rules to avoid issues like eviction or fines.
• Parking: Pay attention to where you're allowed to park and where you're not to avoid issues. Some rental areas might allow street-parking, while others not.  
• Noise or visitor restrictions: Condos, apartment buildings or homeowner associations may have strict rules regarding noise, visitors or common area use that you should be aware of.
7. Furnished vs. unfurnished
• Furnished: Furnished rentals save you the hassle of buying or moving furniture but might be more expensive. 
• Unfurnished: Unfurnished rentals may be cheaper but less convenient for short stays.
8. Safety and security
• Neighborhood safety: Research the neighborhood’s safety, especially if you're unfamiliar with the area. Check for reviews if you're using a rental platform to book the rental. 
• Security features: Ensure the property has basic security features like working locks, smoke detectors, and, in apartment buildings, secure entry.

Finding a short-term rental

There are a number of platforms where you can search for short-term rentals depending on the length of your stay and what type of rental you're looking for. 

Here are a few well-known ones:

• AirBnB: This is more well-known for short travel stays, but many apartments on AirBnB allow for stays of a month or more. The platform offers houses, apartments and single rooms within homes.
• Sublet.com: Despite the name, this site doesn't exclusively offer sublets, but also other short-term rental options with a range of flexability.
• Vrbo: Another option more often associated with vacation rentals, Vrbo also offers longer rental periods for houses and apartments.
• Extended Stay America: 650 locations in the U.S. for extended stay hotels. 

You can also find short-term rentals by owner on Craiglist or Facebook Marketplace. Be very careful if going with one of these options. You won't have the protections of going through a platform, so you will need to do the vetting process yourself. Never send any payment or book a place from one of these options sight unseen. 

Can you get renters insurance for a short-term rental?

Yes, you can usually obtain renters insurance for short-term rentals, though it depends on the rental length and type. Here’s what you need to know:

1. Traditional renters insurance: If you're staying in a rental for more than 30 days, you should be able to obtain standard renters insurance from most insurance providers. This type of insurance typically covers:
• Personal belongings in case of theft, fire or damage.
• Liability protection in case someone is injured while visiting your rental.
• Temporary living expenses if the rental becomes uninhabitable.
2. Specialized short-term renters nsurance: Some insurance companies or platforms (like Airbnb) offer insurance specifically for shorter stays. These policies may offer protection similar to traditional renters insurance but for stays of less than 30 days.
3. Credit card or platform coverage: If you're renting through a vacation rental platform, check to see if your credit card or the platform itself offers coverage.