Posted in Blog  
  on May 20, 2013

The Pros and Cons of Renting a Property

The Pros and Cons of Renting a Property

Rent or Own?


In today’s economy, the housing market can seem like a scary place. Before making your decision to either rent or own, here is a listing of the pros and cons of either option.

Pros of Renting


Here is a look at the pros to renting versus owning a home.

Zero Repair Costs
This perk can be a big one. As a renter you are not responsible for anything that breaks on the property, unless you broke it. Carry no liabilities for maintenance or repair costs.

Jobless Friendly
By renting, you can become more likely to qualify for state benefits if you lose your job.

Lower Deposits
A house normally requires 20% down upfront to purchase versus that of a rental that may only require up to three months of rent as a deposit.

Easy Moving
With a rental, you can move when you decide to once your lease expires. When you own a home, the housing market dictates your ability to sell your home.

Landlords
Landlords can be honest and timely in getting repairs and maintenance issues taken care of.

Cons of Renting


Here is a look at the cons to renting versus own a home.

Insurance
The landlord has the house under their own policy. However, as a renter you are still responsible for any personal property related insurance.

No Return on Investment
As the house increases in value over time, the renter gains no value from the home and money contributed towards the property.

No Customization
Having the inability to customize can lead the renter no choice with painting a room or hanging pictures on the wall.

Landlords
Occasionally, you can come across a landlord that is considered untimely and neglectful of their property.

Renting to Own


The rent to own option provides the renter the ability to pay a premium of their lease. This option is best suited for those who eventually want to own the home they are currently living in as a renter. This amount would be a set amount and depends on the current market price of the home.

Renting a Home vs. Apartment


By choosing a home to rent, you would gain more space which is ideal for renters with pets and children. For those with fewer items and obligations, an apartment could suit their lifestyle better. The cost differences that exist between homes and apartments can vary.

Homes can provide more privacy as well as fewer issues such as infestation of bugs that can easily spread within a complex. Homes tend to pose additional maintenance such as landscaping versus an apartment that covers those types of items. Lastly, you can lease through private owners when it comes to homes although apartment complexes are normally professionally staffed instead.

Current Statistics


Statistics seem to speak the facts. In 2011, 66% of Americans owned the home they lived in. The remaining 34% leased their residence. Typically, those that are 65 and older tend to own homes at a percentage of 83%, ages 45 to 64 own at a rate of 79%, with it slowly decreasing from there.

What are the renters currently leasing out? Almost half of the renters out there rent from complexes or 5 or more units. 34% of renters lease out single family homes while less than a fifth of individuals rent from structures of two to four units. Lastly, a small four percentage lease mobile homes.

Related

Why Renting Homes Has Increased in Demand

The New Popularity with Renting It seems as if the mortgage crisis not only saw a drop in home value, but resulted in individual preferences leaning towards the desire to rent versus own a home. What... More


Most Expensive and Cheapest Rental Markets in the United States

The Rental Market Around the U.S. As people relocated from coast to coast, or any state in between, the rental market is priced at various cost levels. Here is a look at some of the most expensive and... More


Top 10 Healthiest Real Estate Markets for 2013

Healthiest Real Estate Markets for 2013 The housing market this year is showing a lot of promise as home prices rise 4.9% nationwide. Based on the median rent and sale prices nationwide, here is a... More


Most Important Leasing Factors for Generation Y Renters

Leasing to Millennials With an estimated 8 million Gen Y renters hitting the marketplace in the near future, prepare yourself to accommodate these informed and technologically advanced prospects.... More


Average Rent Per Month in the United Kingdom (UK)

Renting in the UK Renting offers its own list of benefits and down slides. Here is a look at unspoken rules to follow when renting in the UK. Location Don’t put all your faith in a single location.... More


Current Trends in Apartment Renting and Leasing

Apartment Renting Trends As renting grows in popularity, trends are bound to change. The Renting Demographic Over 75 million baby boomers are looking to downsize into urban apartments to live a... More


Most Romantic Cities to Rent a Home In

The 10 Most Romantic Cities in the U.S. A listing of the ten most romantic cities in the United States. These cities not only show strong housing markets, but are increasingly considered highly... More


The Pros and Cons of Renting a Property

Rent or Own? In today’s economy, the housing market can seem like a scary place. Before making your decision to either rent or own, here is a listing of the pros and cons of either option. Pros of... More


Buying vs. Leasing a Commercial Property

Commercial Leasing vs. Purchasing If you are looking at developing equity for your business, first consider your options of leasing versus purchasing commercial property. Performing market research in... More


Why People Love to Live in Austin, Texas

Six Reasons to Live In Austin Austin is known as a happening place for young adults. It also serves as a haven for bands, festivals, and foods of all kinds. With new employment opportunity growth and... More