A short-term lease generally refers to a lease that that can be performed in six months or less, or is a month-to-month lease with no specific termination date. These leases benefit tenants inasmuch as they do not obligate the tenant to occupy the premises for a long period of time. This type of tenancy is usually more costly, to reimburse the landlord for frequent turnover costs.

Short-term leases should not be mistaken for license arrangements, (Airbnb, VRBO, etc..) whereby the premises is rented for a few nights or a week. So, what is the major difference?

When you lease your home, either long or short-term, you give a tenant exclusive use of the premises for a period of time in exchange for payment. Actions to recover possession of the premises is generally governed by statutes affording the tenant notice and an opportunity for a hearing.

 A “license” on the other hand is a personal, revocable and non-assignable privilege, conferred either by writing or parole, to do a particular act or series of acts upon anothers’ property without possessing any estate therein.

A few examples of scenarios where licenses are granted as opposed to a short-term lease are a hotel, including extended stay, vacation rental and even a hunting license. Generally speaking, persons involved with licensing are not required to be licensed real estate agents, whereas persons managing short-term rentals are typically required to be licensed agents.

The rental market in the Valley of The Sun is red hot. Most experts do not see that changing anytime soon,  even in the event of an economic downturn.

Having a rental and or “licensing” your home, or a room in your home, is not for everybody. However, for those who have the stomach for it, it can be a substantial source of income.