Owning a home is a lifelong goal of many Americans, renting has advantages too. Homeownership isn’t for everyone. One of the major benefits of renting versus owning is that renters don’t have to pay property taxes. Renters can live practically anywhere, while homeowners are restricted to areas where they can afford to buy. For some people, renting might make more sense for their financial circumstances. If you find yourself asking, “Should I rent or buy a house?” – below are 4 ways renting saves you money.
1.No long-term commitment
Renting gives you flexibility, most leases are year-long – sometimes you can even do month to month. If you have commitment issues, and living in one place, or one city freaks you out, renting may be best for you. Perhaps you’ve moved to a new area and want some time to get to know different neighbourhoods before settling down somewhere. Another advantage – there is the possibility of living in an area where you could not afford to buy.
Your landlord should walk through your rental home at least one time a year. The landlord should look for water damage/leaks, and inspect bathrooms and toilets, roof and gutters, AC units, hot water heaters. Should a problem arise, these are all things the landlord will have to take care of, not you, as a renter. Mowing the lawn weekly, pulling weeds, trimming shrubs… all things that are not the responsibility of the renter.
3No unexpected cost for repairs
When things break, such as a refrigerator, washer, dryer or HVAC – these repairs are not your responsibility. They are the responsibility of the landlord or management company – of course, depending on your lease you may have some hoops to jump through. However, if you are taking care of your rental property, your landlord should fix and pay for all repairs.
5.No down payment
A down payment on a home is a percentage of the home’s purchase price that is paid upfront when you close on a home loan. Some rental properties have no upfront costs at all. You may have to pay an application fee and/or a security deposit before you move in. A security deposit is usually between one and three months’ rent, depending on the management company/landlord. This is much less than 10-20% of the cost of a home. Also, you likely will be able to get your security deposit back, as long as you keep the property in good condition.