We all need a roof over our heads, and we all need a place to call home. Deciding to rent or own the roof over your head and the home that goes with it is a question many ask themselves – which is better? Deciding whether to rent or own depends on many factors and presents several pros and cons dependent on those factors.
Let’s learn some of the major (and minor) advantages of renting vs owning to help set you on the right track or give you the right information to help decide for yourself.
8 Advantages of Renting over Owning
No Maintenance
Ask any renter the number one advantage of not owning their property and they’ll tell you – no maintenance. No maintenance is probably the number one advantage of renting vs. owning. You never have to mow your lawn, you never have to shell out to repair your roof, you never have to repair the cracks in your driveway. Lack of maintenance saves renters tons of money and more importantly, tons of time
Fewer Requirements for a Home
Deciding to purchase a property requires a lot from the potential owner. You need the right income, the right employment, the right references, the right credit score, and a big down payment. For many, those requirements are too much to overcome. Luckily the requirements for renting are much less stringent and provide many more living opportunities if you’re unable to purchase in your current situation.
No Unexpected Costs for Renters
When you rent, you’re guarded against sudden money losses and unexpected costs. If the furnace burns out in your rental unit, no big deal, just call your landlord to replace it. Is your dishwasher making a sudden crunching noise? Let the onsite plumber take care of it. When you rent you don’t need to worry about major appliance breakdowns and other unexpected costs, it’s not your responsibility. When you rent, you’re expected to pay your rent, utilities – and that’s it.
Fewer Peripheral Charges
Homes come with many more charges than just a mortgage. Depending on where you live, purchasing a home could cost you hundreds to thousands in monthly peripheral charges you don’t need to worry about when renting.
Peripheral charges include expensive homeowners’ insurance, local and state property taxes, homeowners’ association dues, country club dues, and much more. That doesn’t even include utilities like heat, gas, and water which are normally included in most rent payments. Sometimes a mortgage looks cheaper on paper, but that’s before factoring in all the extra charges homeowners can expect.
Nearby Amenities
Imagine a house with a gym, swimming pool, sauna, hot tub, dog wash station, dog park, and playground. It sounds like a pretty good house, right? Unfortunately, you rarely see homes to buy with all those amenities due to the cost, but it’s not uncommon to see rental residences with all those amenities and more at no added cost to you. Living at a rental complex can give you a huge grill, pools, and several other amenities you wouldn’t be able to afford if you were purchasing your property.
No Worrying About the Market
When you rent you don’t have to worry about your home value, and you don’t have to watch the local market for the right time to sell or buy if you’re looking for an upgrade. A bad stock or housing market downturn could make you stuck in your home even if you’re ready to move up or move on.
Moving is Easy
Don’t like your rental unit? You can just move out. Moving from one rental or another doesn’t normally take more than a couple of days and a bit of paperwork. Buying or selling a home is a complicated multi-step process that may keep you stuck in an owned property even if you hate it. If you have a wandering spirit and don’t like being tacked down to any single residence, you’ll love the freedom provided by renting.
Can Afford More
You might not be able to purchase a three-bedroom loft downtown, but you might be able to rent it. Rental prices are normally lower than mortgages which offers you many more living arrangements and opportunities you can’t get with owning.
Renting over Ownership for the Right Person
Both renting and owning have their own unique advantages and disadvantages but renting has several advantages over an outright purchase as we learned above. Make your own pros and cons list, factor in variants like peripheral charges, and think hard on what you want out of your living situation. You might be surprised to learn renting is your most advantageous and cost-effective way to live – especially with a for rent by owner property. If you decide to rent instead of own, use our list of questions to ask when renting to get the most out of your rental experience.
