Advantages of Renting

The following are some of advantages of renting that the consumer may want to consider:

1. The initial investment to rent a home or apartment is quite low. Buyers often need to have anywhere between 5 to 10 times to move into a home than to rent an apartment. Unless they are using a VA or FHA loan where move in costs can be virtually the same.
2. Renting costs less money. The funds that would normally be used toward a down payment or higher mortgage payments can be invested into savings accounts that give higher returns. This is especially true in situations where the property is lived in by the renter for less than four years. If you don’t make a large down payment this doesn’t apply.
3. The renter has limited responsibility because they do not have to take care of repairs. The landlord is responsible for these tasks. When owning a home, the owner is responsible for all repair costs.
4. The renter has less of a tax impact on their financial situation. The renter is not impacted by such items as property taxes that can fluctuate often.
5. The renter may be able to budget easier. Rent is an amount that is fixed and may even include utilities in the rental amount. A fixed amount can allow the renter to set a budget easier because the renting cost is set.
6. The renter has more mobility and flexibility to move since leases tend to me short-term.
7. Insurance costs are lower for renters because the renter only needs to insure the contents of the rental property and not the structure itself.

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