1 yr vs. 2 yr apt lease contract?

[jbheywood]

Hi there.
so I have read in the previous threads a while ago that 1 yr lease is preferable than 2 year lease (to avoid the 2 mo security deposit which is ridiculous from tenant's standpoint)

Given the current market, is it still the consensus? (e.g., considering the landlord's willingness to sign for less than 2yr lease)

Thanks

[sundaymorningstaple]

You tale a gamble. Will the rents be up in 12 months time or will they be depressed?

[jbheywood]

that's exactly the subjective probability that I am trying to assess with my question
even if they stay constant I am still better off with one year lease from not having to hand in an extra month of security deposit (opportunity cost)

[sundaymorningstaple]

If I knew the answers to those kinds of questions, I could have retired 40 years ago!

[jbheywood]

with 'crowd sourcing' such as this forum the 'true' answer will be centered around the mean, hence the consensus...

[x9200]

There is no true and universal answer. It depends on a number of factor like whether you have your own furniture or how much you prefer hunting for a new place and dealing with all related things (crooked agents, owners etc). Time and peace of mind have their own values.

[Mad Scientist]

that's exactly the subjective probability that I am trying to assess with my question
even if they stay constant I am still better off with one year lease from not having to hand in an extra month of security deposit (opportunity cost)

Dude
You are asking us to gaze at the crystal ball and find a meaningful solution to your question.?
It is like asking when the stock market will crash.
You have to see for yourself what is the advantage and disadvantage and how it benefits you. Right ?

[revhappy]

with 'crowd sourcing' such as this forum the 'true' answer will be centered around the mean, hence the consensus...

Often times things actually turn out opposite to the consensus. Especially housing and stock market. When every Tom, Dick and Harry start investing without any knowledge and thinking that things will always go up. Thats exactly when you should get cautious and pull out.

[esteelauder]

its depends on the market dude...
previously i was sign 2 years contract w/ owner by giving out 2 months deposit to owner, but he give us condition that its compulsory for us to stay @ their place up to 1 year. after 1 year ++, the rental market goes up so my owner ask us to pay more based on market rate.
just make sure all de black and white paper, contract, receipts, etc etc is with you...

[crazeecanuck]

... well.. my rent went up and the landlord wanted an extra $150 a month to extend the lease another year, but I talked her down to essentially nothing when the conversation went to a two year lease.

I honestly think that prices will continue to go up (or at least won't go down), but that's just my view. Since I'm comfortable in my place, I think it's worth it to go for the two year lease and have safety in the rent price.

The other thing to consider though is flexibility in case you want to move to another place.