We talk a lot about the benefits of owning a home, but what about renting one? A lot of people (and especially a lot of young people) are struggling with the decision of renting vs. owning a home, and it’s an understandable problem to have. Both renting and owning have their own advantages and disadvantages, and these factors should always be considered when making a decision as big as whether you should buy a home or sign a lease.
Renting and buying are big financial commitments, but often in different ways—as well as to different degrees. So in what areas does renting beat out home ownership? Read on for nine big benefits of renting vs. owning a home that you should consider before making your move.
1. It’s Way Less Expensive Up Front
Renting has its own financial hurdles that you have to overcome, such as security deposits, first and last month’s rent at signing, and non-refundable application fees. But even added up those don’t compare to the steep requirement of a down payment and closing costs. And while your monthly rent might be a bit higher than a monthly mortgage cost, you don’t have to be concerned about fronting for things like property taxes and home repairs.
2. It’s Not So Risky
Buying a home is an investment, and investments carry risks. When you rent, you don’t have to worry about the market crashing and putting you under water on your home, or that a costly and unexpected home repair will wipe out your savings account. The biggest risk you take on with renting is usually just whether or not you’ll be happy with the place that you rented, and that’s a risk that most of us can afford to take.
3. You Have More Flexibility
One of the biggest benefits of renting vs. owning is definitely the freedom that it provides you. Want to pack up and move across the country? It’s a lot easier to break a lease than sell a house, and a lot quicker too. And even if you don’t cut out early, renting sets defined terms that you can base big living decisions around. A lot of people like knowing that if they end up with regret over their living situation and/or location they only have to put up with it for a year or so.
4. Repairs are Someone Else’s Problem
Running toilet? Warped window trim? Broken dishwasher? When you rent, these repairs—and their accompanying costs—are the responsibility of your landlord or management company, not you. Depending on your lease, you may be required to contribute to the repairs of problems that were caused as a direct result of your actions, but as long as you’re taking good care of your living space that shouldn’t be an issue. And it’s a whole lot less painful to call your landlord and ask for something to be fixed than to call—and pay for—a repair company on your own.
5. No Property Taxes
Property taxes are a major expense of home ownership, and can put an otherwise affordable home outside of a buyer’s price range. But when you’re renting vs. owning, you have no obligation in terms of paying the property taxes on your unit. Considering just how high property taxes run in some states, that’s a major burden off your back—and potentially a lot more money in your wallet every year.
6. You Know What You’re Paying Each Month
It’s no surprise that a lot of the benefits of renting vs. owning a home are financial. That’s because what you lack in autonomy as far as home decorating and renovating you more than make up for in cost convenience. One area where that is abundantly clear is in your monthly budgeting. Home ownership is a variable cost endeavor. Depending on the terms of a mortgage, interest rates may change over time—going up or down without the input of the owner themselves. The same is true for property taxes, which almost always fluctuate. When you rent, you lock yourself in at a set monthly amount for the entire term of your lease so that the only variable costs you have to worry about are spending more in heat or electricity.
7. Some Utilities May Be Included
Many landlords and management companies cover certain utility costs for their tenants, which means you may end up with free internet, water, heat, or more. As for those utilities that aren’t included with the rent, they’re usually still a lot cheaper than when you buy, since many rentals have less square footage than single family homes.
8. It’s a Luxury Not to Sweat the Small Stuff
Things like chipping paint and yellowing grass aren’t the end of the world, but they do require time and effort to deal with. When you’re renting, you don’t have to think twice about all of the little things that make home ownership such a big day-to-day responsibility—in fact, you probably won’t even notice them most of the time. So if you enjoy spending your weekends hanging out with friends instead of climbing up on a ladder and clearing leaves out the gutter, then renting might just be the best option for you.
9. There’s No Pressure to Upgrade
It’s a lot easier to be satisfied with an outdated kitchen or poorly designed bathroom when you’re simply renting out a space. Homeowners are in it for the long haul however, and upgrades aren’t just part and parcel of the experience, they’re also usually expected if you want to make a good return when you go to sell. As a renter, you can be satisfied with what you’ve got knowing that it’s not forever.
Ultimately, the decision of renting vs. buying comes down to what you can afford and how much responsibility you want to have when it comes to your home. There’s nothing wrong with foregoing home ownership for the flexibility that comes with renting, nor is there anything wrong with going all in and buying a home. Make the decision that’s right for you and your finances, and you should be happy with wherever you end up.
Source: Moving.com
Picture Source: Unsplash
