10 Reasons to be Grateful You Rent Rather Than Own
While some people believe owning a home is a necessary step in establishing a stable life, there are a multitude of reasons that prove renting is the better option. Whether you’re looking to save money, maintain mobility, or not have to worry about property upkeep and value, renting is a great option. This list highlights our favorite reasons to rent.
Less upkeep, more free time.
There are many things around a house that require your time and attention. But, when you lease, many of these things are no longer your concern. Both major issues like storm damage and the smaller, daily maintenance issues are often taken care of by your rental company. So, when a problem occurs, you’re one call away from solving your problem.
The leasing lifestyle means worrying less about home and spending your time on things that matter. The home rental route allows you to have all the positive benefits of a home without the downsides of maintenance and upkeep.
No mortgage or property tax worries.
Mortgage debt is a substantial amount of money on loan. Often, it takes people decades, and hundreds of thousands of dollars, to pay back their mortgage.
There are also a lot of expenses that come with home ownership. Two of the biggest costs that catch new homeowners by surprise are homeowner’s insurance and property taxes. These two expenses alone may add thousands to your yearly home costs. When you rent, not only do you forgo a mortgage, but you also don’t have any extra taxes and insurance to worry about.
Stay flexible and enjoy optional mobility.
When you buy a home, you are signing onto a stationary responsibility. The home cannot move with you. Picking up and moving becomes much harder when you’re a home owner. This is one of the most practical benefits of home rentals.
When you rent, you aren’t signing up for a commitment longer than your lease. So, you can reevaluate where you’re at with every new year. If you don’t like your neighbors, or if you find the neighborhood isn’t for you, no worries. If your family grows too big for your current home, it’s much easier to move for a bigger one. If your work requires you to relocate, negotiating a lease is much easier than navigating the selling process. Whether you want to move or need to move, renting provides the flexibility needed.
At the same time, some rental companies offer long-lease terms. If you want to stay in one location for a while, leasing will allow you to do that, as well. Homes in desirable neighborhoods that offer great school districts, amenities, and features are often worth staying in for longer than one year at a time. Find a professional rental company and sign onto a longer lease if this is the situation you find yourself in.
Similar to the benefit of less maintenance and upkeep responsibilities, renting your home means you don’t have to make big appliance and home update purchases. Over the course of owning a home, things will break and grow obsolete.
When you rent, replacing and updating these things is not your responsibility. The homeowner is the one in charge of buying a new fridge, repaving the driveway, adding more insulation, replacing the old dishwasher, etc. Even one of these updates can cost a lot of money. When you rent, that’s money you’re not having to spend, and it adds up quick.
Initial costs are much more manageable.
Unlike home ownership, signing a lease does not require nearly as much money. The initial costs of buying a home can be outright burdensome. Since a traditional down payment is around 20 percent of the home’s cost, you may find yourself paying close to $40,000 for a $200,000 home. That equates to years of rent for the same home if you choose to lease instead.
At most, your upfront costs for a home rental will include a security deposit and the first month’s rent. You end up paying one or two months of rent payments, not tens of thousands of dollars.
Your home’s value won’t affect your life.
It is true that home ownership can be an investment. However, as the last market crash of 2008 showed us, homes are not guaranteed investments. A home represents a large amount of money, and you lose money if your home’s value drops. Not only will it drop if the markets don’t hold, but your home may lose value for a range of reasons.
A lot of those reasons are out of your control. If you’re neighborhood loses value as a whole, your home’s value will also be brought down. Or, if there ends up being a lull in demand for homes in your area, the cost of houses will subsequently decrease. But, if you rent, none of this affects you at all.
Keep more money to invest elsewhere.
As it has been already addressed, home ownership is an expensive endeavor. Home ownership is also considered a strong investment. But that doesn’t mean it’s the only strong investment. If you choose to rent instead of owning a home, you have the option of investing that money elsewhere.
Instead of investing in an expensive home purchase, where all of your money is going into one investment, you can put that same money into a variety of options. You can put more toward retirement accounts, start your own business, or try your hand at stocks. The financial options open significantly when you aren’t spending money owning a home.
Enjoy living in hot spots for cheaper.
If you are looking to live closer to the city center, or near a more happening part of town, home costs are going to be more expensive. The costs of outright buying a home often become unreasonably high in popular neighborhoods. If you rent, you may find that the costs don’t skyrocket. So, if you’re looking for a home closer to the hustle and bustle, renting is a great way to go. Save money and live exactly where you want.
Plus, if you get that exact location you’re looking for, you can move out in a few years if that lifestyle no longer fits your needs. Renting is often cheaper and allows you to easily move as your preferences and needs change.
Travel with less worry.
One of the most difficult part of home ownership is feeling physically tied to your home. Like having a pet, it becomes more difficult to plan trips and travel when you have a home to consider. But, if you rent your home, there is someone else responsible for it. Therefore, you can travel and leave behind your rented home, knowing it will be looked after while you are away.
And, since you are probably saving money by renting, you will also have some extra money to use during your travels. Not only will you be able to travel easier, but you may be able to travel more.
It’s not a life-changing decision.
When you buy a house, you are making a lot of decisions at once. You are deciding where you are going to live for the foreseeable future. You are deciding who your permanent neighbors are and which community you are going to belong to for a while. You are deciding to take out a gigantic loan and spend a lot of money. These are not small decisions, and they can be overwhelming.
When you rent, you don’t have to carry the burden of this life-changing decision. You don’t have to stay in one spot for years at a time. You aren’t taking out tons of money for home ownership. If you’re not ready to make these decisions, then renting is an excellent option and a reason to be thankful.