Rent or Buy? Eight Advantages of Renting Property

It’s everyone’s dream to own a suitable house to live in. Everyone would also agree that getting a home is one of the most significant investments in their lives. With a house of your own, you can have a lot of freedom. However, owning a home comes with a lot of responsibilities and may be too expensive for some people. 

A good alternative is by renting. At first glance, renting property might seem odd if you want to save up on money. However, renting does have its advantages.

For one, you could use Quick cash loans to pay your rent in case you miss a month’s pay or if you consumed your deposit. These types of loans are perfect for paying any emergency costs because they’re fast and have an easy application process.

Here are some more advantages that renting has over buying. A disclaimer though, choosing between renting and buying are major life decisions.

The reasons mentioned below are only suggestions and you should really weigh your options before doing anything that has lifelong repercussions.

No Maintenance Costs

One of the best advantages that renters have is that there are no maintenance fees to pay.

When renting a property, the owner or the landlord is responsible for the maintenance, repairs, and even improvements. In fully furnished apartments or rooms, appliances that don’t function properly is often the responsibility of the landlord. 

Unless the renter did something to damage furniture or any appliance inside a room or apartment, landlords are obligated to repair or even replace the broken facilities. Consider this a big thing to help you save up on money. 

Since homeowners own everything inside their property, they either have to get rid of any broken stuff or repair it.

Of course, the money would always come from their own pockets. Not having to pay maintenance and repair costs are often big selling points for renters who want to save up on money.

Yes for deposits, no for downpayments

When you buy a house, you need to have a downpayment to do so. You could opt for Mortgage loans or any other personal loans to come up with a suitable downpayment. With renting, there’s absolutely no down payment involved when you want to move in. Although there’s no downpayment required with leasing, the catch is that you must pay security deposits. 

Security deposits are often stated in a contract between the renter and landlord. Some contracts might indicate a one month advance, two months deposit agreement before allowing renters to move in.

Security deposits are needed because they act as insurance to the landlord in case a renter isn’t able to pay a month’s rent. 

It also means that renters have to pay the total rent upfront before they can move in. Security deposits can safely be withdrawn from a landlord, granted that the deposit wasn’t consumed for the duration of a renter’s stay in the property.

The amount needed for a month advance, two months deposit agreement pales in comparison to the amount necessary for a downpayment for buying a new house. 

Free Amenities

Another attractive advantage renters have over homeowners is the access to amenities. These amenities could be swimming pools, parking spaces, a reliable security system(which can include personnel), personal emergency services, gyms, spas, etc.

Having to own a swimming pool can cost thousands more for homeowners, wherein renters can freely avail of the amenities provided. Again, these amenities are provided by the owner of the property, and no maintenance fee is required. 

Proximity

For people who rent upscale apartments or high-rise condominiums, the amenities aren’t the only things that get them to rent. The sheer proximity of these buildings to cafes, restaurants, hospitals, schools, and other places of interest is too much to resist. 

Homeowners will have to drive to town from subdivisions or villages that can be far away. Being close to these facilities also means that renters save more on gas for their cars. Most of the time, people who want a tasty breakfast can order up from the nearby cafe, or just walk on down to the place to eat.

Lower Utility Costs

Most homes are larger than a lot of rental units. The size and space of homes is the reason why homeowners usually have higher utility bills.

Rental properties typically have smaller bills, and renters can either opt to pay it themselves or include it on their monthly rent. High-rise apartments and condominiums also have efficient floor plans that distribute heat and power more efficiently. 

Ease of moving down

Due to a lot of factors that affect the economy today, a lot of people often have a hard time earning and saving up. Renting makes it easy for people who want to save by allowing them to downgrade their options into more affordable units easily. 

For a homeowner, the rising costs of upkeep, fees involved with buying and selling property, and many other factors make it difficult for them to move out.

Another factor why homeowners can’t afford to move out is if they already invested in repairs and renovations in their homes. The money from selling the property might not be enough to cover those costs, therefore limiting their options further. 

Lesser Tax Impact

Since renters don’t own any real estate properties, they don’t have to pay property taxes. These taxes are standard for homeowners and might vary from state to state.

Property taxes can also depend on the total value and area of a property. To make it simple, if you own an expensive house in a large area, you’ll pay a significant amount of taxes. 

Although a lot of people put aside money for these annual payments, it can be a financial burden in the long run as newly built houses are slowly increasing in size.

Fixed Rental fees

The rising costs in upkeep often leave homeowners scratching their head and their pockets close to being empty. Renters, on the other hand, enjoy fixed rates on their rental fees.

A landlord can ask for a raise in rental fees but only if it’s justifiable. They’re also mandated by state laws to give 30-60 days notice to their tenants if an increase is incoming.

Takeaway

At first, owning a house could be beneficial in the long run. However, a lot of factors affecting the economy nowadays are making homeowners think twice about owning homes.

Renters enjoy the comfort of paying a fixed rent while enjoying amenities readily available for them.

Upkeep, taxes, rising utility costs, and other fees often limit homeowners in their choices. Whether you’re renting or owning a living space, be sure that you’re financially ready and capable of shouldering any costs that may appear.

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