Making Better Real Estate Decisions

Should you buy or rent a home? For people who have the option, this house occupancy decision can be a real dilemma. Yet, most people find that renting properties is much more convenient and affordable. So, what are the advantages and disadvantages of renting a home compared to making a purchase? 

Pros of Renting a Home

Flexible Lease Terms 

All properties for rent require the tenant to sign a lease. Essentially, a lease agreement between the landlord and the tenant details the occupancy terms and conditions. Typically, the lease period for residential properties varies from short-term to long-term. Thus, a rental property gives the tenant the flexibility to stay at home for a given period. For instance, you can rent a home to meet your accommodation needs when you travel for holiday or work and during relocation. Hence, you do not require a long-term commitment to settle into a rental property. 

No Maintenance Responsibility

One of the most significant benefits of rental properties is that there is no responsibility for maintenance. When you purchase a home, you assume the responsibility of maintenance. However, this responsibility usually remains with the landlord for a rental home. Although you generally have to take care of the house, you do not have to incur the cost of renovations and major repairs. For instance, if the house needs repainting or plumbing works, you only need to inform the landlord or property manager. Thus, leasing property for rent lifts the financial burden for home maintenance. 

Increased Affordability 

A home purchase requires a substantial financial investment. If one does not have adequate savings to buy a house in cash, one may require taking out a mortgage. Yet, a mortgage can put you in a long-term debt cycle and possible home foreclosure. In comparison, it is much easier to own a home by renting. Typically, the monthly rent for lease properties depends on the house's type, size, and location. Irrespective of the payable rent, it is still much cheaper than buying a home. More so, the amount you pay as a security deposit for rental homes is less than the down payment required for purchase. Hence, you can still enjoy the comfort of your dream house through properties for rent. 

Cons of Renting a Home 

Despite the varying benefits of renting a property, there are few drawbacks. For starters, the amount of rent you pay for a rental property is not always fixed. Usually, the rental prices vary depending on industry-specific and economic conditions. For instance, the landlord may increase your rent due to a real estate boom or rising inflation. Thus, it would help if one budgeted for an annual rental increment to avoid getting wedged out of rental property due to price changes. 

More so, properties for rent can sometimes offer less permanence and independence. The most significant disadvantage of renting a home is that there is no permanence. Irrespective of how long you lease the property, it still belongs to the landlord. Thus, you may not have the freedom to make permanent improvements to the property. However, long-term leases may allow you to negotiate more independence to alter the home to your liking.

Ultimately, it is much easier, convenient, and cheaper to rent a home than buying one. Engage a realtor who can help you select a few properties for rent to meet your housing needs.