A short-term rental is a furnished property someone can rent for a period shorter than a standard lease. This can be days, weeks or sometimes months, but shorter than one year. It’s important to note that what is defined as a short-term rental varies by jurisdiction.
When visiting somewhere for a shorter amount of time, it is hard to commit to a full lease that locks you into a year or more of renting. Short-term rentals allow you to book for shorter periods of time in an apartment-like setting. Use this guide as your go-to source for how short-term rentals work and how they differ from other rental and hotel options.
Key takeaways
- Similar to a vacation rental, the primary purpose of a short-term rental is to provide home-like housing for shorter periods of time.
- What qualifies as a short-term rental varies by jurisdiction.
- Short-term rentals offer fewer amenities than extended stay hotels and longer-term rentals because they are usually individually owned properties rented out.
- Compared to extended stay hotels, short-term rentals may have less flexibility to extend or shorten your stay when plans change because there are often other reservations to accommodate.
- Extended stay hotels may also offer more amenities and availability than short-term rentals, because they have many rooms and properties.
How short-term rentals work
Short-term rentals are a great option for someone looking for a place to stay for a short amount of time, without having to sign a monthly or annual lease. These are fully furnished houses or apartments that are typically booked online through a third-party website or property manager rather than a traditional landlord.
Amenities included in short-term rentals can vary by property but generally include basic utilities. Short-term rentals usually also include necessities like full kitchens to help guests feel at home.
When defining what a short-term rental is, it is important to note that different jurisdictions define and regulate these differently. However, in general, stays in accommodations owned by individual owners that last a few nights to months are generally considered short-term rentals.
Short-term rental vs. short-term lease
Short-term rentals and short-term leases may seem similar, but there are a few key distinctions between them:
-
A short-term rental is typically a furnished place to stay with fewer contractual obligations.
-
A short-term lease is a signed rental agreement for a set term and usually comes unfurnished.
Use the chart below to compare what a short-term lease is compared to a short-term rental.
|
|
Short-term lease |
Short-term rental |
|
Is a lease required? |
Yes |
No |
|
Is the rental period set? |
Yes |
Yes |
|
Average period? |
Can vary, commonly 3-6 months |
Can vary from days to months depending on jurisdiction |
|
Flexibility to extend or change stay? |
No |
Sometimes |
|
Costs? |
Less expensive than short-term rental, because it’s unfurnished and there’s a commitment to stay for a determined amount of time |
More expensive than short-term lease, because it’s furnished |
|
Furnished? |
No |
Yes |
|
Who it’s ideal for |
Those with set timelines, travel dates, contracts |
Those needing more flexibility, those with fluid timelines |
|
Benefits? |
More structure, more predictable costs |
More flexibility, less strict terms, more personalized experience, fully furnished, some utilities included |
|
Drawbacks? |
Less flexibility, stricter terms and dates, utilities are usually not included |
Less structure, typically higher cost because amenities are included |
If someone is looking for a place to stay without committing to a lease, another option can be weekly-rate hotels. This type of lodging often has more availability, making it easier to extend your stay.
Short-term rental vs. vacation rental
Now, let’s differentiate what a vacation rental is compared to a short-term rental. Again, they may seem similar, but there are a few key distinctions to pay attention to:
-
Short-term rentals cover a broader range of stays, including relocation, work assignments and medical travel. They also can be used for vacations.
-
Vacation rentals are generally booked for shorter leisure trips through a third-party platform.
Use the chart below to compare vacation rentals to short-term rentals.
|
|
Vacation rental |
Short-term rental |
|
Is a lease required? |
No |
No |
|
Is the rental period set? |
Yes |
Yes |
|
Average period? |
A few days to weeks |
Can vary from days to months, depends on the jurisdiction |
|
Flexibility to extend or change stay? |
No |
Sometimes |
|
Costs? |
Typically, higher nightly rate for a shorter period of time |
Typically, lower nightly rate the longer you stay |
|
Furnished? |
Yes |
Yes |
|
Who is it ideal for? |
Leisure and vacations |
Relocation, business travel, digital nomads |
|
Benefits? |
Convenient, often located near attractions and entertainment, suitable for a wider range of temporary housing, practical amenities, fits larger groups of people |
More flexibility, practical amenities, fully furnished, some utilities included |
|
Drawbacks? |
Less flexibility, limited availability, more rigid check-out instructions, varying standards due to private owners, cleaning/services fees |
May require minimum stay requirements or commitments, may be farther from attractions and entertainment |
Who uses short-term rentals?
Short-term rentals are ideal for those needing to find a place to stay for weeks or months, like:
-
People relocating for work.
-
Those trying to test out a new area before they sign a lease.
-
Traveling healthcare workers finding a temporary home base when on assignment in a new city.
-
Contractors on assignment who need somewhere to stay while working on a project for an undetermined amount of time.
-
Families who are between homes and in need of temporary housing.
-
Government and military personnel on temporary orders needing access to practical amenities and a flexible stay.
-
Those needing temporary housing during home renovations.
Short-term rentals are usually sought out of necessity, not leisure. Many guests in a situation that warrants staying in a short-term rental are budget-conscious and looking for an affordable and practical place to temporarily call home.
Extended stay hotels as a short-term rental alternative
When looking for a place to stay for days, weeks or longer, extended stay hotels can be a viable alternative to short-term rentals. Unlike fixed-term rentals or leases, guests can stay in an extended stay hotel as long as they need and extend their stay if plans change, subject to availability.
Use the chart below to compare extended stay hotels to short-term rentals.
|
|
Extended stay hotels |
Short-term rental |
|
Is a lease required? |
No |
No |
|
Is the rental period set? |
No |
Yes |
|
Average period? |
Days, weeks or longer |
Can vary from days to months, depends on the jurisdiction |
|
Flexibility to extend or change stay? |
Yes (pending availability) |
Sometimes |
|
Costs? |
Lower nightly rate the longer you stay, with weekly and monthly rates |
Typically, lower nightly rate the longer you stay |
|
Furnished? |
Yes |
Yes |
|
Who is it ideal for? |
Relocation, business travel, digital nomads, those between housing or leases |
Relocation, business travel, digital nomads |
|
Benefits? |
Convenient, flexibility, practical amenities, more availability with more locations to choose from, more brand standards upheld, rewards program to access better rates, pet-friendly rooms |
Flexibility, practical amenities, fully furnished, some utilities included |
|
Drawbacks? |
Fewer luxury amenities than other hotels, rates may change if your length of stay changes |
May require minimum stay requirements or commitments, may not allow pets |
Extended stay hotels like Extended Stay America offer practical amenities to help guests feel at home for any length of stay. This includes full kitchens in every suite, free wi-fi and on-site guest laundry. And of course, no lease to sign.
Finding monthly-rate hotels can also help lower costs with an even more affordable nightly rate. Note: Guests may be required to provide a deposit for incidentals, which is usually refunded and released at or after check out.
Plan your extended stay
When looking for somewhere to stay when spending time away from home, short-term rentals, short-term leases, vacation rentals and extended stay hotels are all options. Here’s how they compare:
-
Short-term rentals are a broader term for temporary housing and can be rented out by individual owners or companies. Definitions and length of stay requirements or limits vary by jurisdiction. These offer more flexibility and don’t usually require a lease.
-
Short-term leases are similar to short-term rentals, except they require a lease that locks you into a definite period of time and binds you to stricter terms.
-
Vacation rentals are similar to short-term rentals in nature, but like their name states, they are for leisure travel.
-
Extended stay hotels are an alternative to short-term rentals and offer flexibility to extend your stay, as well as lower your price with weekly or monthly rates.
With 650+ locations nationwide and fully furnished suites with kitchens, Extended Stay America offers a great temporary housing solution. An optimal alternative to short-term rentals, extended stay hotels offer all the amenities, conveniences and flexibility you need at a price you can afford. Whether you’re looking for short-term housing alternatives or a place to stay for a little longer, Extended Stay America is here for you.
Book your stay today at Extended Stay America.
