Benefits of Renting a Property
In this modern era, most youngsters begin their lives in rental properties. As they start a family, build their career and save money, they decide to buy homes. Meanwhile, elderly people decide to sell their properties, downsize and become tenants again. In the 20th century, homeownership in the United States fluctuated between 60 and 70 percent. Deciding whether you want to own or rent a property is personal. But, there are many benefits in renting a property.
Benefit #1 – No More Maintenance Bills
First of all, you don’t have to worry about repair bills or maintenance charges. This is an immediate and a definitive benefit experienced by renters. When you decide to buy a property, you will be responsible for all repair and maintenance charges. If the roof leaks or an appliance stops functioning, the landlord should get them fixed! Landlords are responsible for all renovation, repair and maintenance charges. The final cost depends on the item to be maintained or repaired. Luckily, renters don’t have these worries.
Benefit #2 – Financial Returns
Renting comes with many financial benefits. When you buy a home, you will have access to a wide range of amenities. But, the access comes at an enormous price. Renters have access to amenities without spending a big amount. Luxuries like fitness units, swimming pools, and parks are found in most upscale and midscale apartments. Tenants can use these luxuries without any additional charges. On the other hand, homeowners are bound to spend thousands of dollars for the amenities. The maintenance and installation fees add-on.
Benefit #3 – No More Property Taxes
Tenants don’t have to pay real estate or property taxes. This is another obvious benefit of renting. A lot of landlords consider property taxes as a big burden. The tax differs from one region to another. In fact, property tax computations are quite complex. The final figure depends on the property’s overall value. As the property becomes bigger, the property tax is bound to increase. This becomes a financial burden on homeowners. Though renters live in large properties, they don’t need to pay real estate taxes. In fact, “Rental agreements” can be used to cut down the amount of tax they pay.
Benefit #4 – Affordability
Though renters pay a deposit, it is never as big as the down payment made by homeowners. When you decide to buy a property, you must make a sizable down payment. In most cases, the down payment ranges between 20 and 25 percent. On the other hand, renters pay a deposit that is equivalent to a month’s rent. Renting helps people save thousands of dollars from down payment and interest.
Benefit #5 – Avoiding Risks
Real estate in the United States is never a stable market. It is shaky 60% of the time. Thus, the percentage of renters in the country is increasing steeply. Though the housing industry is recovering, many people are unprepared to make big investments. With foreclosures around, US citizens are worried about buying properties. When people rent homes, they don’t have to worry about owning a mortgage. They will be able to keep their finances safe and sound. Risks of bankruptcy and hefty monthly interests can be avoided.
Unstable economies can decrease the overall value of properties. When the prices of properties fluctuate, homeowners are affected in many ways. The impact on renters is very low. For example, property taxes and mortgage payments depend on the property’s value. When the housing market becomes rocky, renters are not affected. They don’t have to worry about anything. In fact, their monthly rents are likely to decrease.
In this complicated, busy world with fluctuating economies, people struggle hard to connect dots and meet ends. Renters have the freedom to downsize at any time. If you are unable to handle the rent and your daily expenses, you can move to a smaller property. Homeowners cannot make this decision. The fees involved in selling a property are high. Breaking free of a pricey house comes with many strings attached.
Benefit #6 – Fixed Rents
As mentioned previously, property taxes and mortgages are never fixed. They are bound to go up and down. On the other hand, rents remain fixed for a considerable amount of time. The lease agreement is prepared with this duration. Though landlords can increase the rent, they must give prior notice. This means, renters have the time and freedom to decide how much they want and can pay.
Benefit #7 – Low Insurance
Last but certainly not least, renters pay low insurance charges. Homeowners are advised to buy expensive insurance policies. On an average, homeowners pay between 300 and 500 USD every month on insurance. On the other hand, renters pay only 10 to 20 USD a month.
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