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Short Term Rental Agreements In Egypt - Pros And Cons

Short Term Rental Agreements In Egypt - Pros And Cons Image

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. 

  • If you are only contracted for 6 months and will possibly return to your country with no guarantees that you will continue your rental duration of longer than 6 months, it would be best to find a suitable home for yourself that provides a landlord that can welcome you with a short term agreement. 

  • If you are newlywed and you need a short period of time to adjust to your own place with the ability not to be stressed about the due dates of receiving your own property, having a short-term duration would be best for you. 

  • People who are based outside of the country of Egypt would like to ensure that they are in the best suitable location possible and that will not be known by not experiencing the neighborhood and environment yourself.  

  • After a long-term duration, in most cases, it can turn into a month-to-month basis by the tenant and the property owner if their first term was a flexible relationship. 

  • The property comes fully furnished with all the functioning appliances, which sometimes can save certain 


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

  • The landlord can increase the rental value of the property due to the duration of the rental agreement. If the property owner is asking for a certain amount for a longer duration, it is to secure his/her own future endeavors. In this case, the landlord will raise the rental value and claim it would be for repairs or damages that the rental cost will probably not cover. 

  • After a long-term duration, however, when your rental agreement has expired,  if you are residing in a property where there is no actual legal paperwork involved, it can put both parties at risk due to tax payments on behalf of the landlord.

    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.