A long-term rental (LTR) refers to a lease agreement where a tenant occupies a property for an extended period, typically exceeding 30 days. These arrangements are common in both residential and commercial real estate, offering stability for tenants and consistent income for landlords. Below is a detailed breakdown of key aspects:
Definition and Time Frames
- General threshold: Most sources define LTRs as agreements lasting over 30 days, with leases exceeding 6–12 months considered standard for residential properties.
- Flexibility: Terms can range from month-to-month arrangements to multiyear contracts, with renewals often negotiated indefinitely.
Benefits for Landlords and Tenants
For landlords:
- Stable income: Reduced vacancy risk compared to short-term rentals
- Lower operational costs: Tenants often handle utilities, basic maintenance, and cleaning
- Tax advantages: Deductions for repairs, mortgage interest, and travel expenses
For tenants:
- Cost savings: Long-term leases often have lower monthly rates than short-term stays
- Stability: Predictable living arrangements without frequent relocations
- Customization: Ability to negotiate terms directly with property owners
