Twelve months is the standard minimum period for a rental apartment lease in New York and most other cities. However, demand for short-term leases has increased as more people have embraced the “work from anywhere” model since the pandemic’s start.
In response, property owners and investors have realized that offering short-term rental leases can increase profits and turnover. Here are the societal changes and benefits motivating homeowners to rent their units out on a short-term basis.
The Rise of “Work from Anywhere” Culture
Advancements in personal technology and digital connectivity enable us to stay connected no matter where we are. The pandemic lockdowns provided a global opportunity for people and organizations to embrace work-from-anywhere culture and work-from-home models.
As a result, many people discovered that they do not necessarily need to work with their colleagues in offices to be productive. Through collaborative platforms, social platforms, and strong internet connections, businesses, colleagues, students, and families remained connected despite not traveling to meet physically.
June takes a global approach to work – literally. Click here for a peek at our team working hard from different cities around the world
For individuals, the ability to work from anywhere has numerous benefits:
- The freedom to travel and live in different locations worldwide while still working. Soon, younger generations won’t know a different working world.
- The opportunity to live with spouses and family members even if they are constantly required to move. For example, people with military spouses can pursue lasting careers despite relocating with them frequently.
- Better quality of life and work-life balance. WFA workers have more time to spend with their families and at home or access to a peaceful environment for higher productivity. Less commuting in traffic has also proved to reduce stress.
- Lower cost of living. People are no longer cornered into more costly rentals to be closer to work.
So, what does the rise of the work-from-home/ work-from-anywhere culture have to do with short-term leases? While more people embrace WFH and WFA, fewer people want or need to live in the exact location for more than 12 months. For example, the average digital nomad or WFA spouse with a military partner needs a flexible lease that enables them to live in a place for less than 12 months and extend their lease if necessary.
WFA culture also supports the rising gig economy and online freelancing, where individuals work on short-term contracts from home as independent contractors. Proof of income for such individuals may vary since there isn’t a consistent salary at the end of the month. This is often a requirement for more traditional, long-term lease agreements.
No-Strings-Attached Housing
With remote work here to stay, investors and landlords can reap massive profits by providing quality housing with flexible short-term leases. Turnkey apartments without long-term commitments are appealing, affordable, and easier for the modern WFA renter.
No-strings-attached housing reduces high broker fees charged on long-term leases. For example, the average broker fee in New York is 10 to 15% of the annual lease amount. Before a renter can access an apartment, they must pay a broker fee on top of the security deposit, first month’s rent, and other moving expenses.
The renter pays the broker fee regardless of whether the broker helped them find the housing unit and sign the lease. This fee is a barrier to affordable housing for renters. The result is vacant spaces, lower income, and zero profits for landlords and investors.
The June Model
June partners with landlords and connects them with tenants looking for short-term leases. According to Founder and CEO Daniel Mishin, the average length of leases pre-pandemic was nine months. That number has since dropped to five months. Many renters are looking for short-term leases, and June helps landlords find them. Here are some of the other benefits of working with June as a property owner:
Lower repair costs
June performs quick upgrades to properties at no out-of-pocket costs to owners. All houses get new paint, a contemporary design, and furnishing per the tenant’s wishes. Short-term renters also do not tend to make massive adjustments to homes. Most houses are usually pristine by the time the short-term renter leaves.
Compete with giants
June’s professional real-estate team renovates and markets mom-and-pop properties, helping them compete with larger investment and real estate firms with more resources. June also offers a platform where landlords can track how their property performs, rent collections, and other tenant information.
Reduced labor
June takes responsibilities off the landlords’ hands, such as rent collection, accounting for the property, and property maintenance.
Dynamic pricing
June’s dynamic pricing model helps owners optimize gains from their property. Owners can adjust prices depending on market performance, and renters can also estimate the cost of rent depending on the duration of their stay. In addition, owners can offer add-ons such as furnishing and cleaning services at an extra cost.
High-quality, vetted renters
With June, owners have access to hundreds of pre-qualified renters who fit the requirements to rent responsibly. All tenants go through thorough background, criminal, and credit checks. Renters also sign a contract of strict but reasonable rules to abide by.
Tune into advice from June CEO Dan Mishin on which traditional property management methods to leave in the past below.
Eliminated broker fees
High broker fees are a barrier to quality tenants and fast turnaround times. June does not charge a broker’s or service fee, encouraging renters to take up apartments quicker.
Test with a single unit
Committing all your properties to short-term leases may seem risky at first. Fortunately, June has no unit minimum, and owners can start with one apartment to test results and find the way forward.
When renting is easier, more people rent. Do you have a unit you’re trying to fill? Make it easier for someone to rent it by renting it out on a short-term lease with June. Reach out to June and step into the future of rentals.
