4 little-known benefits of renting a home

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Reconsider renting.

Key Point

• Renting a complex or skyscraper may come with some pretty cool amenities for no extra charge.
• The down payment for a rental home is much cheaper than the down payment for a mortgage.
• Are house prices dropping in your area? This could be a rental.

Except for two years when I lived in a house I bought for the wrong reasons, I’ve spent my adult life as a renter. For many people, owning a home is the cornerstone of the American Dream. While I’m currently getting my finances in order with the hope of owning my own home again someday (I’m hoping to be older and smarter now), renting is a big part of my life. has benefited me in many ways in the upheaval and career dynamics of the last decade. The same is true for many people. If renting a home has ever made you feel less financially savvy than the homeowner, get that feeling out of your head.

For one thing, owning a home comes with a lot of unexpected (and unprepared) costs, and for another, renting makes it easier to move out if you need to. As I used to say back when I had a more location-based career than my current one, “It’s much easier to break a lease than sell a house!” In addition to greater freedom of location and location, here are four benefits of renting that you may have overlooked or never thought of before.

1. Access to amenities

Over the last few years I have rented single-family homes and large apartments in older two- and four-family homes. As a result, it’s been a long time since I didn’t have access to special amenities outside my home (besides the privilege of being near some nice parks and outdoor recreation areas in the area where I lived). But if you’re renting an apartment or condo in a large complex or high-rise, you may be able to get free amenities that would cost you extra if you owned a home. may include a gym, a swimming pool managed by a leasing company, or a dedicated business center with internet access and printer. What a sweet perk!

2. No down payment

If you want to buy a house, you have to pay a significant down payment. In fact, if you take out a traditional mortgage, we recommend setting aside 20% of the purchase price of your home to avoid mortgage insurance (PMI) payments. But if you’re moving into a new rental house, you might only be asked for his first month’s rent plus he’s only asking for a month or two months’ refundable security deposit. There may also be pet and cleaning deposits, which may or may not be refundable, depending on your circumstances and the landlord’s request.

The current average price of a home in my city is $174,102. If you wanted to buy a house at this price with a 20% down payment, you would be paying about $35,000. But when I signed the lease for my current apartment in 2021, I sent the landlord less than her $2,000 in both his first month’s rent and his first month’s security deposit. . I live in a cheap area! Imagine how much it would cost to shop in one of the more expensive areas of the country.

3.No need to worry about declining asset value

A common argument I hear from homeowners advocates is, “Homes always go up in value!” While it is true that property values ​​will increase over time, this is not a guarantee. In fact, as the Federal Reserve hikes interest rates to stem inflation, mortgage rates are rising and the housing market is cooling. For rentals, it may not matter if the landlord’s property is worth less than it was at the beginning of the year. But if you own a home and are looking to sell yours? That’s another story.

4. Reduce insurance premiums

Finally, be aware that renter’s insurance is much cheaper than homeowner’s insurance. Homeowners insurance costs more because it covers the entire property. If you rent, your landlord will cover this cost. However, we highly recommend purchasing a renter’s policy. This will cover your home belongings in the event of a catastrophe such as a fire. Your landlord’s homeowners insurance will not cover your loss.

Embrace that rental lifestyle. it’s not. You’re paying for the roof over your head and likely benefit from some of these sweet perks.