When buying a home, timing doesn't always work out perfectly. You may find that you need a place to live for weeks or months before you close on your new place.
Or perhaps you're looking to buy a home soon, and don't want to bind yourself to a long-term lease so you can be free to move at a moment's notice.
Whatever the reason you wind up needing one, a short-term lease can get expensive fast. The average daily hotel rate in the United States in 2022 was nearly $150, a sharp increase from previous years when the pandemic caused prices to drop. Depending on your location and how much space you need, a hotel room can cost $200 or more per night.
Even the most generous friends have their limit when it comes to long-term houseguests, so you'll likely want to explore other options.
Luckily, there are plenty of options that won't break the bank and can provide a comfortable temporary living situation.
What type of rental is best for you?
Depending on how much time you need, how many people are in your family, whether you want to be in the suburbs or in the city, etc., your needs will vary. Here are a few options that cover several short-term lease needs.
Hosted stay
Websites like Airbnb and Vrbo can be good places to start, especially if you have a family with children in tow. Everyone can likely have their own bed (maybe even their own room), and the place might also have outdoor space.
Airbnb and similar services are a better choice if you're staying a week or more. Nerdwallet looked at 1,000 Airbnb reservations for 2022 and 2023 and found that a weeklong stay (median $213 per night) was 32% less expensive than a one-night stay (median $314 per night). This is mainly because of the cleaning fee (median $75 according to Nerdwallet), which is usually a one-time fee and the same whether you stay one or seven nights.
Extended-stay hotel
Extended-stay accommodations usually include a kitchen and work space, so they're great if you'll be working from your hotel. Breakfast, happy hour, and concierge service are other perks that might come in handy while you wait to move into your new home.
Usually the longer you stay, the less you'll pay, so be sure to ask about discounts.
Corporate housing
Corporate housing facilities might specialize in business accommodations, but they will likely be just as happy to take your money even if your stay is not associated with work. Corporate housing often offers similar perks as extended-stay hotels.
If you're employed by a company that works with corporate housing, don't hesitate to ask your human resources representative for help finding a place to stay.
Other considerations
The nightly rate isn't the only aspect of a short-term rental to think about. Unexpected fees and needs can crop up; here are a few to consider.
Parking
A hotel may charge fees to park on their property, and it can be expensive. Be sure to ask the rate and research whether street parking might be an option. Keep in mind street parking might also be expensive and limited to certain times of day.
Transportation
Maybe you don't have a car and will need to rely on public transportation. Make sure your rental is near a bus or train or you might spend a fortune on Lyfts or taxis.
Food
Most Airbnbs and extended stays will have a kitchen, and cooking meals at home can save you money. Or, perhaps a hotel stay includes a free breakfast and a restaurant on site. Think about what type of meals will best suit your needs during your temporary stay.
Work
If you will need to work from your accommodations, make sure you'll have a quiet space with good WiFi and a comfortable place to sit.
Other amenities
Many VRBOs or similar stays include a washer and dryer, and if you have a family, that can be a godsend. Then again, many hotels have pools, which could keep energetic children occupied for hours.
There are many pros and cons when it comes to short-term accommodations. But if you think through your needs before booking, you'll find a comfortable place to stay while you transition into becoming a homeowner.
Sources: Nerdwallet, Realtor
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