Advantages of Renting a Home vs. Buying

For many, the "American Dream" is to own a nice home, complete with the white picket fence, 2.5 children and a dog. We have been lead to believe, since childhood, that this is what we are supposed to work for. Home ownership is ideal for many people, but some must start out in rental property. This is not necessarily a negative; as renting a house can have many advantages. Often times, it is the best financial solution.

Financial Reasons to Rent a Home

Homeownership has a lot of financial responsibilities. You will be expected to pay a large down payment, make your monthly mortgage payments, and pay for homeowners insurance and real estate taxes. You also must maintain the home. Any repairs or appliance break downs will come out of your pocket.

Rental units, rather it is a home or apartment, usually require the first and last months rent, plus a deposit that is the same amount as a months rent. While it may be expensive to initially get into the rental, you will not have to pay for any repairs to the home. The landlord will make sure the furnace, air conditioner and all major appliances are kept in working condition.

Some rental properties have utilities included. This means that you will always know what your payments are for the month. You will be able to budget your finances better, knowing that the heat or air conditioning bill will not increase in the coldest or hottest months of the year. This perk alone is enough to make people want to stay in rental property that has inclusive utilities.

Advantages of Rental Property: Frequent Relocations

If your job moves you around from state to state, renting a place to live is easier. When that next transfer comes in, you merely need to pack up and go. You won't be left with the headache of selling the home you have, or of making a payment on an existing home plus renting a home in another state. Your relocation will go much smoother and there will be fewer worries. Some businesses will even secure the new rental for you and pay moving expenses.

Living in a rental home will allow you the luxury of "trying out" the city or area before you commit to purchasing a home. You may try several rental units in different areas of the city before settling on the perfect area. If you find you do not like the area, or the home, all you have to do is give the landlord a 30 day notice, and you are off to the next rental. Home owners do not have that luxury.

If you are a person that prefers to hang out with friends after work, renting an apartment is a huge advantage. You will not be required to mow your lawn, nor shovel your sidewalks. The perk here is that a maintenance crew will do it for you, leaving you more time to socialize with friends. The American Dream is whatever you want it to be, so if renting is an option that appeals to you and your lifestyle, there are many beautiful places to choose from. Pick up a newspaper and start looking!