SHORT TERM RENTAL AGREEMENTS IN EGYPT - PROS AND CONS


Renting an Apartment|3.4 MIN READ|Updated on: 22 October 2023|Written by: Mohamed Hassan

WHAT IS A SHORT-TERM RENTAL AGREEMENT? 

It is well known that not all landlords and tenants always sign a rental agreement for longer than one year. Sometimes they can mutually agree to sign a short term rental agreement in the case that it can benefit both parties.

 Property owners generally prefer a long-term rental agreement due to the fact that they can be rest assured that they won't spend any further money on their property. The concern that bothers most landlords is when the property will be vacant soon which can lead to potential losses of monthly revenue which might take some time to find another suitable tenant. 

A short term rental agreement is based on a rental contract that does not exceed the 6-month period. The standard short-term rental agreement that you can find is between the ranges of three months and possibly month by month. 

You will find short-term rental agreements among the communities where the property isn't highly demanded, in this case, the landlord would not intervene with short-term profit but when it comes to most luxurious homes in Egypt, you will notice that most of the landlords of these properties would not take into consideration any rental agreement less than one year. 

In Cairo, the capital city of Egypt, it is highly not recommended to rent short-term rentals to anyone outside the vacation homes that can be taken highly into consideration. 

PROS OF RENTING A SHORT-TERM RENTAL AGREEMENT AS A TENANT: 

Some people consider renting short-term for the ability to be flexible and not locked into a written agreement where there can be penalties and further payments to be made. 


CONS OF RENTING A SHORT-TERM RENTAL AGREEMENT AS A TENANT: 

  • However, you should want to also focus on the Landlord’s behalf and their perspective because there are other aspects you should want to consider. Any landlord’s worst nightmare is the consideration of the time that is spent between tenant to tenant. Once a tenant is serious and makes their first payments, the landlord usually tends to forget the process and does not seem to care much as long as the money rolls but it is definitely a different procedure when you must go through this process every 6 months as a short term rental agreement. 

    Another perspective that any landlord should consider is having neighbors if your property is not completely private. When you are constantly renting to new tenants as a short-term lease, sometimes, the neighbors will not be very pleased having to keep a positive relationship for their own benefit. 

    As a landlord, you can always befriend the neighbors in the building, having a friendly relationship with the neighbors can guarantee that the neighbors will be helpful to your new tenant as well as keep an eye on your tenant in case they are doing something harmful or not acceptable towards your property. 

    One thing is certain about short-term leases, is that it is not for weak-minded people from both sides regarding the tenants and the landlords. As a landlord, it is quite risky but if accomplished during the right time of year, you can always have this risk pay off big time. 

    Listing your premise on a short-term renting website can potentially increase your monthly income more than you can imagine. For websites that rent short-term rental agreements such as AirBnB, you can find the prices under the listing of properties that have rates per night that can usually add up to more than higher than the monthly income rate for a long-term contract but that is only if you put into consideration that the property will be occupied for that time. 


    For Example:

    You can search for a property online that is listed for $1,500 per month/long-term. You can find the same property under short-term rental agreements for $100 or even $150 per night! This means that the property owner can reach the amount of a long-term monthly rate by only renting the property for a quarter amount of the time. 

    PROS OF RENTING A SHORT-TERM RENTAL AGREEMENT AS A LANDLORD: 

    CONS OF RENTING A SHORT TERM RENTAL AGREEMENT AS A LANDLORD: 

    However, for this case, you can protect yourself by charging a higher security deposit than usual, which can be considered ordinary if the tenant is planning such events such as Christmas parties or family gatherings often.




    THE SHORT TERM DECISION 

    The decision for a short term rental agreement totally depends on your living situation, standards and even needs. If you are traveling to a new country for an extended period of time or have a time gap between accommodations, renting a property for a short term can give you more flexibility, comfort rather than staying in a hotel that can be costly after each day. 

    Renting your own property rather than residing in a hotel for a couple of days also gives you the ability to cook your own meals and not having to depend on local restaurants or even the hotel to provide for you. It also gives you the capability to finish your own laundry without having to deal with a price tag every time. 

    However, if you are planning to travel for an extended period of time that is between six months and longer, it would obviously be preferred to commit to a long term rental agreement, which in the long run can save you some money that can be used in other aspects of your lifestyle. 

    Regardless of the circumstances, the decision to rent short term will be your own personal preference. While you might look at a short term lease as the best option for you at the moment, but in the future you might want to consider a long term lease with regards to your workplace and family. Having to understand the pros and cons of short term leases shall prepare you to make the best decision possible when you are ready.




Article Tags

#Cairo[12]#Egypt[8]#Egypt Real Estate[5]#Egypt Rental Apartments[7]#Egypt Rental Properties[3]#Maadi[40]#Rental Apartments[37]#Rental Properties[9]#Rental Villas[9]

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