Question on rental duration

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hoyhey
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Question on rental duration

Post by hoyhey » Tue, 11 Jan 2022 2:50 pm

Hi, my first post here.

I am looking for an apartment (entire unit) and so far most of the posts prefer 2 years contract.
May I ask what are the pros and cons of 2 years contract (vs 1 year)?

If I understand correctly the benefits of 2 years are:
-Lower monthly rent (slightly)
-Fixed price for next 2 years
-Less chance of owner ending contract early

However, the cons are:
-Double the deposit (some chance of not getting the deposit back fully)
-Early termination - If I have to move out, say after 18 months, (non-diplomatic reason), do I forfeit all the deposits?

Thank in advanced for all the advice.

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abbby
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Re: Question on rental duration

Post by abbby » Tue, 11 Jan 2022 3:11 pm

Pros:
* Secure your unit for 2 years - Assurance. There's quite a shortage of rentals in the market, likely so in the next 1-2 yrs as well, delays in HDBs resulting in people renting, couples renting waiting for correction in property prices

* Do not need to keep moving after 1 year, imagine landlord raises price after your 1 yr.

* Hence, save in moving cost (after 1 year)

Cons:

* If you can't get used to the environment, you'll need to get used to it for 2 yrs.

* If you have a nasty neighbour, you'll need to live alongside with him/her for the next 2 years.
The secret of life is honesty and fair dealing. If you can fake that, you've got it made. - Groucho Marx (1890-1977)

Lisafuller
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Re: Question on rental duration

Post by Lisafuller » Thu, 13 Jan 2022 2:49 am

Pros definitely outweigh the cons, especially in this market, where most landlords are seeking stability and therefore prefer long-term tenants. Personally I would always go for a longer lease, other than the obvious cost savings, I would want to have somewhere to really call home, rather than moving every year.

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