Short-Term Rentals Are on the Rise
May 28, 2020
Short-term rentals are growing in demand, and that is prompting more landlords to consider offering flexible leases.
Renters who are perceiving uncertain economic futures due to the COVID-19 pandemic may be in search of more flexible arrangements with their leases, Forbes.com says. The trend is particularly evident in New York City, which has seen a surge in coronavirus cases since the outbreak began in the U.S. The number of listings for short-term or month-to-month leases has surged by 70%, according to data from StreetEasy, a New York City listing site. Furnished rentals increased by more than 40% over the last year.
Some landlords are weighing termination riders. These can be attached to a lease and contain terms for ending the lease for residents who may be uneasy with the current unemployment or economic picture.
“This helps residents feel more comfortable to move to or remain in a building when our management firm is listening to their concerns,” Teresa Chavin, the leasing manager at 525 West 52nd Street, a luxury building in Manhattan, told Forbes.com.
Rent-stabilized tenants usually aren’t able to enter into month-to-month leases, but some landlords are finding ways to add in special clauses within these arrangements, too. “The goal is to assure residents they’ll have a place to stay and minimize the need to go outside to search for apartments,” Andrew Barrocas, CEO of MNS Real Estate, a New York City brokerage firm, told Forbes.com.
Landlords are offering some tenants the option to go month to month or arranging for new leases for three to six months.
“Landlords would rather have a paying tenant in place than risk units being vacant and having to find another paying tenant,” Jared Antin, director of sales at Elegran, a New York City brokerage, told Forbes.com.
Updated: July 02, 2020