Owning a home has long been regarded as the American Dream, but individual circumstances have led many more people to consider the various benefits of renting.
Rental properties can offer tenants certain additional amenities such as social, business and fitness opportunities. Some apartment complexes offer an extensive list of amenities intended to entice and retain renters while improving the tenant's quality of life. These amenities may include:
- Community living space with entertainment kitchen
- Movie screening rooms with theater seating
- Business centers with video conferencing capabilities
- Game rooms with billiards and game tables
- Community gardens
- Swimming pools and jacuzzis
- Outdoor fireplaces with seating areas
- Courtyards, playgrounds and nature trails
- Social activities for residents
- Nearby retail businesses
- After school programs for children
Renters are not locked into a location if a new job opportunity arises. Certain leases contain language, often called a termination clause, which allows tenants to terminate a lease early in exchange for a specified fee. A termination clause may specify acceptable reasons for early termination, such as a job transfer that is more than 50 miles away. In some cases, the tenant may not be liable for any payment if the unit is re-rented within a particular time period.
Renters enjoy financial flexibility unavailable to those with mortgages. If one runs into financial trouble, it is much easier to reduce monthly expenses without the added burden of being locked in a mortgage. In addition, money that would have been used towards a down payment and homeowner expenses (including the mortgage) can be applied to investments such as retirement plans or life insurance.
A renter's monthly expenses tend to be very predictable. Rent payments will be the same each month, and utilities are similar, if not equal, each month. Even more importantly, renters do not have the unexpected expenses associated with owning a home, such as servicing the furnace, fixing a leaky roof or replacing an appliance.
Lower Maintenance Costs
Landlords are typically responsible for maintenance issues both inside the individual unit and in the common areas. This includes repairing or replacing broken or non-functioning items, as well as the labor to conduct these repairs. It is inherently in the landlord's best interest to maintain the property in a manner that will attract and keep tenants. In addition, under most state and local laws, landlords are required to fix major problems, such as broken steps and pest infestations, as well as maintain properties in a manner that satisfies basic habitability requirements, including clean and structurally sound premises, adequate weatherproofing, and available heat, clean water and electricity.
No Cash Outlay
The down payment and closing costs associated with buying a new home are often cost prohibitive and can prevent individuals and families from buying a property. An important benefit of renting is that there is no cash outlay required other than the first month's rent and the security deposit.
No Market Risk
A home purchase can be thought of as an investment similar to putting money in the stock market. The money that is invested in the home – through down payments and mortgage payments – is at risk. The home's value could increase, resulting in favorable gains. The value, however, could also decrease, leaving homeowners with an underwater mortgage, where more money is owed than the current value of the home.
These are all are very favorable reasons one might decide to rent over owning a house. By utilizing ManageCasa to manage your rental, many things including rent reminders and maintenance issues can be reported easily to your landlord.