Pros and Cons of Renting | Real Estate Guide
As an experienced real estate agent, I understand the hard decisions between renting and buying for most families. There are so many advantages and disadvantages to renting or selling! Ultimately, the best decision is dependent on your unique situation and property goals. Throughout this blog, I will dive into the pros and cons of renting a home or apartment instead of buying.
Advantages to Renting
Lower Upfront Costs
When renting an apartment, townhouse or home, you have the ability to put forth a much smaller financial commitment than closing on a house. You do not need a downpayment, you also may not have any closing costs either. You may need a deposit to secure your unit, but this is dependent on the property.
Maintenance + Amenities
When you rent, you are not responsible for most repairs or maintenance expenses. This is usually the responsibility of the landlord. This helps with avoiding large unexpected costs and makes monthly budgeting a bit easier. Your property may come with unique amenities, too. This could be a gym, pool, or community center maintained by property managers or your landlord.
As a renter, you have a lot of flexibility. Leases can last a few months to a few years which means you can easily move to a new city, upgrade or downgrade your space depending on your needs. Then, you do not have to deal with the stress of selling a home.
Drawbacks to Renting
As a renter, you are not contributing to building equity in your property. When you own a home and pay your mortgage, you are able to build equity. Renters do not get to have the benefits of property appreciation of their home over time since they do not get to “own” the property that they pay for monthly since it is only a rental.
Limited Control and Uncertainty
When you are a renter, you do not have full control over the place you are living. You may not be able to personalize or make significant changes to your living area. You also have to follow the regulations and rules created by your landlord or property owners. The property owners can also decide to sell the home or increase rent prices which are both beyond your control.
Lack of Stability
When you are a renter, you have leases that usually need to be renewed annually. Since you do not have control over your home (like a mortgage allows), you may have to move often which can be expensive and disruptive. Renters may have to leave due to changes in management at apartment complexes, drastic rent increases, and more which feeds into the limited control, uncertainty, and lack of stability.
Ultimately, renters experience lower upfront costs, flexibility, and less responsibility when it comes to maintenance and amenities. However, the drawbacks are lack of control and stability, along with no equity building like you can with a mortgage. As a real estate agent, I am here to help you navigate the decisions you have in front of you to help you make the right decision for your family and needs. If you are buying or renting, it is imperative to know the advantages and drawbacks of both.
We hope that this blog post has helped you understand the advantages and drawbacks of renting versus owning. If you need an agent to represent you in the CSRA market, contact us!
The Bradley Sikes Group
Meybohm Real Estate