Benefits of Renting

by: Jo Montgomery

There was a time when homeownership was considered the American Dream. The celebrated moment when you become a tax-paying adult. Today, more and more individuals are deciding they don’t want to give up the flexibility, financial freedom, and amenities that renting affords. They’ve busted the homeownership myth, and are forgoing the 30-year mortgage, for what they consider a better quality of life. If you’re up against the rent vs. buy conundrum, check out this list of advantages of renting. They may just help you decide. 

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What are the benefits of renting?

Live wherever you choose

Many don’t think of this, but renters can live almost anywhere, while home buyers are restricted to areas they can afford to purchase in. For buyers, living in an expensive city may be out of reach, but not for renters. You’re correct if you’re thinking that rents will be high in these desirable areas as well. Even so, renters have a much better chance of finding an affordable monthly payment than home buyers.

No worries about decreasing property values

As property values go up and down, as property values do, homeowners are affected in a big way. Renters don’t have to ride the waves and can sail smoothly through the storms.

No Repair or Maintenance Costs 

Repairs and maintenance on a home can get pretty pricey. Not only that, they come at the most inconvenient times. No one plans to have their dishwasher die or their roof leak. But when you rent, your landlord is responsible for all maintenance, improvement, and repairs. You just make a call, and all is taken care of.  The best part is that no money comes out of your pocket.

No down payment

Renters certainly have the better financial deal when it comes to up-front costs. Although renters generally have to pay a security deposit equal to one month’s rent, it’s minuscule compared to the average 20% of property value required when purchasing a home.

Amenities, amenities, amenities

Most apartment communities have amenities we just couldn’t afford on our own. Like an in-ground pool, fitness center, electric vehicle charging station, lounge, community room for parties, and more. These types of amenities make renters feel like they’re on vacation all year round.

No property taxes

A major financial benefit of renting is that renters don’t have to pay typically high property taxes. If you’re wondering what the property taxes are in the area you’re looking at, you can check it out for yourself. In some geographic locations, the cost can be tens of thousands of dollars a year – a heavy financial burden. Just think of what you could do with that money!

A stable rent amount

Your monthly rent is fixed for the span of your lease agreement. That means it can’t rise unexpectedly. Yes, landlords can raise the rent with notice, at the end of your lease term. But there are no surprises in between.

Less expensive insurance

A renter’s insurance policy is much cheaper than a homeowner’s policy. Even though it’s cheaper, it covers nearly everything in your apartment, including furniture, computers, and valuables. 

Lower utility costs

Apartments typically have a smaller and more efficient floor plan. That adds up to more affordable monthly heat and power bills. 

Upsize or downsize

Need more space? Need less space? Renters have the option to make that change at the end of their lease. No questions, no hassles. This is particularly good for major life changes like having a baby or retiring.

What’s the bottom line on renting? For those looking to avoid the drawbacks of homeownership, like the costs of upkeep and property taxes, renting wins hands down. In the end, it’s a lifestyle choice. And renting is the choice of many who want more financial freedom, greater flexibility in where they live, and access to generous amenities that make every day a little sweeter.