The biggest reason many owners hold back from offering a 2–3 year lease is the fear of falling behind the market if rents rise quickly. It feels safer to stick with a 12-month lease and review the rent each year.

But when you look at the full picture, the higher rent you can set up front, plus the re-letting and vacancy costs you avoid, the long-term lease often leaves you ahead.

Here’s a simple three-year comparison tool. It factors in market rent growth, a small lag for index-based increases, and the real cost of reletting every couple of years.

Move the sliders to match your property and see how a long-term lease stacks up against the usual 12-month cycle.

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