In American culture, we’re often told that renting is a loser’s game. After all, why throw away your money on a landlord when you could be paying off a mortgage on a home of your own, building precious equity all the while?
While this line of argument has its merits, it fails to acknowledge the many financial and personal advantages of renting a home. Opting for a home rental has always had benefits, but these are currently stronger than usual.
After all, US mortgage rates are at eye-watering highs, while the housing market as a whole is facing a downturn for buyers and sellers alike. So, if you’re wondering whether it really is better to rent, check out these five reasons for doing exactly that.
1. Lower Costs
Yes, the long-term costs of a mortgage are often lower. However, in many situations, being a renter can save you huge amounts of money, both upfront and on an ongoing basis.
First of all, let’s look at the upfront costs that those buying a home property must pay. You have to pay property tax, which can easily be in the tens of thousands of dollars. Then there are fees for real estate agents, brokers, and surveyors, which again will often be in the five figures.
And that’s before you even get the keys to your home. Once you move into a home that you own, you are responsible for a large number of ongoing costs.
All repairs are your responsibility and must be paid for out of your own pocket. If your boiler breaks down or your roof caves in, you have no choice but to pay.
If you have bought an income property, the same applies. Meanwhile, those who purchase condos will have to pay ongoing service fees, which are often thousands of dollars a year.
If you’re a renter, none of these costs apply to you at all. Your landlord or their property management company is responsible for all repairs. You do not have to pay lawyers or brokers huge fees to move into a rental. You are exempt from property taxes. If you’re not looking to spend huge amounts of cash in one fell swoop, renting might be your best bet.
2. Less Admin
Buying and living in a home of your own comes with a lot of paperwork and admin that does not end the moment you move the furniture in. You will have to contend with your property taxes on an annual basis, which means a whole additional raft of paperwork to submit to the IRS.
You may be beholden to certain rules set by your homeowners’ association, which might require you to arrange certain cosmetic repairs or updates on a regular basis.
You will be responsible for repairs and maintenance, which will eat up much more of your time than you could possibly expect. If you are the kind of person that truly values your time, renting will free up a lot of it.
3. More Freedom
Freedom is the value that most of us hold dear to our hearts. This means the freedom of not being tied down for decades or the freedom from being at the mercy of forces beyond our control. Renting can offer freedom on both of these fronts. With rentals, you can choose a place to live based on your lifestyle and where you want to be.
If it’s not working out for you, you can move out and head to the next place, once you have given your notice. If you’re a homeowner, it’s not that simple. Your home will often have a multi-decade commitment. You have your 25-year mortgage to contend with.
Meanwhile, the months and months of hard work that it takes just to buy the place puts many people off from ever doing the same thing again, leaving them less mobile and less free. On top of this, there are usually far fewer hoops to jump through when renting.
As this platform for Property Management in Houston, TX explains, all you need to do is pass your tenant screening and show you can pay the rent on time. This is a far cry from the brutal and often invasive process one must go through to buy a home of their own.
4. Greater Predictability
If you value predictability and stability, renting can – perhaps surprisingly – be the better option. Yes, you have fewer rights when it comes to being moved out of your home.
However, you are also less at the mercy of the housing market. As a homeowner, so much of your future prosperity depends on how the market will behave.
Will your home lose value, thereby destroying your equity and leaving you in more debt? Will interest rates keep going up, adding hundreds of dollars a month to your mortgage payments?
With renting, the stakes are lower and budgeting for the future is often easier. Your rent is set out in your contract.
While this can change from one year to the next, it’s much easier to vote with your feet and move to somewhere cheaper if you are not satisfied with the terms offered to you by your landlord.
5. Unrivaled Amenities
For many renters, the main draw is that renting is a means of accessing a lifestyle that would otherwise not be feasible.
Many rental complexes across America offer amenities that are included in the rent, ones that homeowners would have to pay through the nose for.
This includes security guards, swimming pools, gyms, outdoor and rooftop spaces, laundry rooms, and maintenance services. For some, this far outweighs the benefits of home ownership.
More Advantages of Renting a Home
The advantages of renting a home are clear, even if they won’t apply to everyone.
If you’re the kind of person that isn’t flush with cash, values time and freedom to move, and prefers a certain kind of lifestyle, then renting may well be your best bet. If you’re renting and want to make that house truly feel like a home, we have got you covered.
Our dedicated Home Improvement page offers actionable insights into how you can make any home feel like somewhere you want to be.
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