We’ve all heard that if you rent, you’re throwing away your money, but this opinion just isn’t true for everyone. There are many perks to renting a home in this struggling housing market, especially if you’re flexible and looking to save money. Even though renting does not build equity and you can’t customize the home to your liking, you will save money and be able to relocate as need be. And always remember that just because you don’t own your house, doesn’t mean you don’t need to protect your possessions with renters insurance. Here are 10 major advantages to renting a home:
- More Flexibility and Mobility: Renting provides much more freedom for tenants who have to move or want to upgrade at the end of their lease. They aren’t tied down to a property for years like homebuyers. Those who have to relocate and sell their property run the risk of losing a great deal of money in the sale.
- No Upkeep Fees: When a tenant’s dishwasher breaks or the AC goes out, there’s a maintenance worker who fixes it at no cost to you; however, homebuyers are responsible for taking care of needed repairs and mowing the lawn. Upkeep is tedious and expensive.
- Save Money: Contrary to popular belief, buying a home does not necessarily save you money and is often more expensive than renting. When you buy a home, you accrue several fees that add up quickly. You have to pay closing fees, mortgage interest, property taxes, homeowners’ insurance and maintenance costs. Not to mention, buying a home requires a large up-front investment and typically a bigger mortgage than rent during the first few years of ownership.
- Reduced Commute: Small rental homes are often located inside or very close to most major cities, making your commute a breeze. Those who buy single-family homes outside of the city and in surrounding suburbs will have a longer commute and are further away from the city amenities.
- Don’t Have to Worry About Neighborhood Value: Unlike homebuyers, renters don’t have to worry about the value of their neighborhood. They don’t have to consider home value, schools and other factors that affect homebuyers much more.
- More Incentives: The struggling housing market has caused landlords to offer some unbeatable incentives for renters. In an attempt to get renters to renew their leases, landlords are making rent cuts, offering free months rent and throwing in lavish amenities like flat-screen TVs for staying. Homeowners don’t get these kind of incentives.
- No Foreclosure Risk: Buying a home is expensive, and unexpected events can make it financially impossible to pay your mortgage. Failure to make payments can result in your property being foreclosed. Not only do you risk losing your house but your credit rating and finances will also suffer. Those who rent don’t have to worry about foreclosures because they don’t own the property.
- Lease Term is Negotiable: Unlike home ownership, renting provides negotiable lease terms. This means that if for some reason you have to move out, you can as long as you haven’t signed a lease that states a desired term. Breaking the lease can certainly hurt your credit, but renters have alternative options of subleasing or sticking it out until they can move.
- More Options: Those who rent have a wide variety of options to choose from. Many of today’s rental homes offer modern amenities and furnishings that would cost a fortune in a new home. There has also been a significant increase of owners converting their properties into rentals to offer tenants more affordable, luxurious living.
- Rent is Cheaper than Buying: In many cases, renting is cheaper than buying a home in the largest U.S. cities. When calculating the price-to-rent ratio, mortgage fees and maintenance expenses outweigh the rental price for most homes.
