Why Calgary Landlords Should Think Twice Before Offering Short-Term Leases

In Calgary’s evolving rental market, flexibility can seem attractive. Some landlords consider offering short-term leases — three, six, or even month-to-month agreements — believing it provides adaptability in uncertain economic conditions.

At first glance, shorter terms appear strategic. They allow owners to adjust rents more frequently, pivot toward a sale if market conditions improve, or retain control in a changing environment.

However, in most cases, short-term leasing creates more instability than advantage. For long-term investment performance, structured fixed-term leases remain the stronger strategy.

Here’s why.

1. Vacancy Risk Increases

The most obvious risk of short-term leases is increased turnover.

Every time a tenancy ends, you face:

• Potential vacancy days
• Marketing and advertising costs
• Showing coordination
• Screening and onboarding
• Cleaning and turnover work
• Administrative time

Even in a healthy Calgary rental market, turnover is not guaranteed to align perfectly with demand cycles. If a three- or six-month lease ends during slower rental periods — such as mid-winter — you may face extended vacancy.

Longer fixed terms (12 months or more) stabilize income and reduce exposure to seasonal market fluctuations.

Vacancy is one of the largest performance drags on rental investments. Reducing turnover is often more impactful than chasing marginal rent increases.

2. Tenant Quality Often Correlates with Lease Length

Tenants seeking short-term leases are not inherently problematic — but they are often in transitional situations:

• Job uncertainty
• Pending relocation
• Relationship changes
• Home purchase planning
• Temporary work assignments

These circumstances can result in higher unpredictability.

By contrast, tenants willing to sign 12–24 month leases are often looking for stability. They are establishing roots, enrolling children in school, integrating into communities, and committing to an area.

Longer-term tenants typically:

• Maintain the property better
• Invest emotionally in the home
• Communicate proactively
• Renew more frequently

Stability benefits both parties.

3. Increased Wear and Turnover Costs

More frequent turnover means:

• More move-in/move-out inspections
• Higher cleaning costs
• Increased risk of damage
• More repainting and patchwork
• Administrative time

Even when damage is minimal, natural turnover causes incremental wear. Flooring, walls, appliances, and fixtures experience more stress when occupancy cycles increase.

Long-term tenancies reduce that churn.

4. Rent Adjustment Isn’t Always an Advantage

Some landlords assume shorter leases allow them to “keep up with the market” by raising rent more frequently.

In reality, Calgary’s rental market does not consistently justify frequent upward adjustments. Markets fluctuate.

If rents soften, short-term leases can force you into renegotiations at lower rates sooner than anticipated.

Longer leases provide income predictability — which is particularly important for:

• Mortgage planning
• Cash flow forecasting
• Portfolio stability
• Risk management

Stability often outweighs short-term speculation.

5. Administrative and Legal Complexity

Every new lease requires:

• Screening and verification 
• Lease documentation
• Condition inspection reports
• Deposit handling
• Trust accounting adjustments
• Communication and onboarding

In Alberta, compliance under the Residential Tenancies Act must be precise. Increased frequency increases the chance of administrative error.

Shorter lease cycles multiply paperwork and risk exposure.

6. Corporate and Executive Tenancies Prefer Stability

Calgary remains a hub for corporate relocations, energy professionals, healthcare specialists, and technical talent.

Many executive tenants arrive on structured employment contracts of one to three years. These tenants prefer stability — and often require fixed terms aligned with employment assignments.

Short-term leases may deter this high-quality tenant segment.

In our experience, executive tenants on structured fixed terms often:

• Pay reliably
• Maintain properties meticulously
• Require fewer day-to-day interventions
• Renew when assignments extend

Offering only short terms can unintentionally filter out these stable candidates.

7. Turnover Disrupts Building Dynamics

In multi-family buildings or condominium settings, frequent turnover impacts:

• Security
• Neighbour relationships
• Parking management
• Elevator bookings
• Move-in coordination

Boards and neighbours value stability. Higher churn can create friction and operational strain.

8. Predictable Income Reduces Stress

Rental property ownership should be strategic — not reactive.

When leases are short, landlords often find themselves:

• Constantly monitoring listing platforms
• Reassessing market conditions
• Preparing for turnover
• Managing uncertainty

Longer leases allow owners to focus on long-term performance instead of short-term volatility.

Peace of mind has value.

When Short-Term Leases May Make Sense

There are limited situations where shorter leases can be appropriate:

• An owner intends to sell within a defined timeframe
• A property is undergoing redevelopment planning
• A furnished executive property serves relocation clients
• A landlord requires flexibility for personal occupancy

Even in these cases, careful planning and clear documentation are essential.

Short-term leases should be strategic exceptions — not default practice.

The Bigger Picture: Stability Drives Returns

The strongest performing rental portfolios are built on:

• Stable tenancies
• Consistent cash flow
• Reduced vacancy
• Controlled maintenance costs
• Predictable renewals

Turnover is expensive. Stability compounds.

In Calgary’s market, a well-presented, properly priced property with a strong fixed-term lease remains the gold standard.

Final Thoughts

Short-term leases can appear flexible — but flexibility often transfers risk from tenant to landlord.

While there may be specific circumstances where shorter terms align with ownership strategy, most landlords benefit from prioritizing stable, fixed-term agreements that protect income, reduce churn, and attract long-term residents.

Rental real estate performs best when managed with structure, discipline, and long-term thinking.

If you are considering lease structure options for your Calgary property, a thoughtful strategy aligned with market realities and investment goals will always outperform reactive decision-making.