If you find an apartment and have a choice of renting it for one year or two years, which one should you choose?
The answer depends on your situation, but if rents are expected to climb, then committing to a two-year lease looks more attractive. The main advantage of a two-year lease term is the potential savings in rent. Think about it: If your landlord wants to raise your rent after you've signed a two-year lease, he'll have to wait a long 24 months -- not just 12 -- until your next renewal.
Real estate research firm Reis Inc. reported yesterday that U.S. apartment rents rose this quarter after five quarters of record declines. The new data indicate that rents may continue to rise as the sector begins to rebound, according to the Financial Times. If this plays out as forecast, then choosing a two-year lease term is certainly worth considering, given that it may bring significant rent savings.
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