The rental market has grown over time, and the demand for houses has hiked over the last few years, making investments in the real estate sector the go-to solutions. So is renting a house the best move you can make? Are there better alternatives?
Reasons for Renting a House
Renting a house can be influenced by several factors depending on your situation. It's much easier to get a rental place than one to buy, and other houses were built to meet the market's demand. The primary reason why people prefer renting homes is that it is relatively cheap (we will dig more in-depth on this later in the article). Additionally, plenty of rental housing designs, especially on apartments, are fancy, especially for the young generation.
The Advantages and Disadvantages of Renting a House
Renting vs. buying a house is a dilemma that many individuals have had when moving into a new place. However, it is essential to consider the pros and cons of renting one to help you make a decision. Do you have questions to ask when renting a house? The following points can give you some clarity of the things that you were unaware of.
Pros:
What can you gain from renting a house?
1. Low Maintenance
The beauty of renting a house is that you'll save yourself the hassle and worry about doing repairs on that house. Some people prefer renting a room in a house mainly for students, and those on low wages and repairs are on the landlord (at least most of them). It saves you the hassle of getting essential tools for home repairs and having to do the fix-ups yourself.
2. Flexibility
If your work's nature requires you to go for field projects far from where you reside or if you enjoy traveling around exploring different places, then renting can be the best option for you. The beauty of renting is that it'll enable you to be flexible since you can move from place to place and still get a house that suits your style and taste.
3. A Cheaper Option
Rent is relatively cheaper than a mortgage! Usually, when getting a place, you sign a contract that can be as short as a couple of months. The rent will be affordable for you since you won't commit to a long term agreement. For up-front costs, you'll only need to pay a deposit for a month or two as your security.
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Cons:
What do you have to lose on renting?
1. Remodelling
You'll have to deal with the design and structure of the house since it's not yours. You cannot change anything in the place, whether it's by decorating or replacing particular fixtures. That's the limitation that you have when you don't own the house.
2. Benefitting the Owner
How does renting a house work? Renting involves paying for your stay from a given period, usually a month. For renting, you will be benefiting the property owner since you'll be helping them to pay for the mortgage of the property that you're living in instead of satisfying yourself.
3. Changes in Prices
Whether you're renting a house vs apartment, you will always be on toes since you cannot tell when the landlord might increase rental charges. Homes do appreciate, and if you're in such a situation, you better pay more or leave if you cannot afford it.
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4. It's Not Long Term
Renting an apartment isn't a long term solution since you only pay for a month to live in residence. After your time is over in that house, you will have to leave and find another place or renew your contract there.
5. Others
- Someone renting a house cannot enjoy the tax incentives given to homeowners.
- By renting, you will not be building any form of equity.
- Policies for some rental properties can be quite uncomfortable with you, such as not allowing pets.
- Eviction can happen at any time if the landlord wants to occupy the house.
- You are under a contract and a set of rules.
Conclusion
Before you decide on whether to rent or buy a house, you should consider your financial position and figure out which option will work well for you. When looking for a rental property, it is crucial to go through the policies on the lease contract to see which ones you agree with and which ones you aren't okay with to make a decision.
Do you want to rent a property? What kind of property, apartment, or house? Leave a comment.
Author’s Bio
Alex Green is a copywriter with 3 years of experience. He is fond of healthy living and knows everything about home improvement. In his spare time, Alex likes walking with his golden retriever, meeting with friends, and attending the gym.
(Written by Alex Green, 29th Sept 2020)
