Renting often seems like a waste of money. However, there are more benefits to renting than you think.
Everyone rents for a different reason. A lot of people even think of renting as a burden because they can’t afford to buy a home. That’s not always the case though. In fact, renting can be a gift, not a curse. As you take the right approach…
Discover these 8 common reasons why people decide to rent instead of buying a home. And learn how you can benefit from renting your next home.
1. Flexible Lifestyle
One of the best things about renting is that you can move at any time as long as you follow the terms in your contract. If you’re renting and decide you don’t like the neighborhood or your job moves you to a new city, you simply need to end your contract.
This type of flexibility empowers you. You can explore different types of homes, try out new neighborhoods, and drop everything to travel the world without the stress of being tied to a mortgage.
When you rent, you’re free as a bird.
On the other hand, if you own a house, it cements you to one location. You’re tied to your mortgage. If you lose your job and can’t pay rent, or you need to move, or your neighborhood changes and you’re not in love with the surroundings anymore, you’re stuck.
You’ll either need to sell your house or find renters to move in. (And that can be a challenge altogether.) And if you just moved into your home, it may be years before you can sell it and make any kind of profit.
2. No Mortgage
A mortgage isn’t rent you pay to your bank to keep your place after your term expires. It’s a loan with interest. And most importantly, it’s a commitment.
If you can’t pay your mortgage, you get penalized. Or, worse… In fact, you may even lose your house.
Alternatively, if you rent your apartment and experience challenging times, you simply need to move to a cheaper place. There’s no need to worry about having a mortgage hanging over your head.
3. More Time to Save for a Down Payment
Many people dream of owning their own place. But you don’t want to rush into buying a home for the sake of buying a home. Instead, you may want a home you’re proud to live in. That means saving up the right amount for your deposit.
If you rent, you can save for a down payment while you put aside money for your down payment and closing costs. (And because you have more freedom to move as a renter, you may be able to move to a cheaper apartment to reduce your rent and save even more.)
4. Fewer Responsibilities
While you have a responsibility to take care of your apartment, ultimately, it’s not your job to take care of the major expenses.
If you experience water damage, a broken faucet, or a fire, you don’t need to fix it yourself (unless it was your fault).
Your landlord needs to keep your apartment in good condition and habitable shape, so you don’t have to spend your time or money or fixing up your rented apartment.
5. More Money for Other Investments
There’s a continuous debate on whether or not a home is a good investment. Some argue that stocks are better, other investors swear by real estate. The truth is that it depends on the investor.
Renting gives you more liquidity. As a renter, you can take the money you would spend on closing costs and a housing deposit and invest it. Homeowners, on the other hand, end up with a lot of money tied up in their houses.
As long as you know how to invest properly, you can avoid “wasting money” while renting by investing in other opportunities.
6. No Wasting Money on Furniture
When you rent a furnished place, you don’t need to spend money on furniture. That’s potentially hundreds or even thousands of dollars you save.
Furnished homes can range in what they offer. Some come stocked with barebones (think appliances, bed, dressers, etc.) Others come fully furnished with everything from the TV to kitchenware fully included in the rental price.
Plus, you save yourself a lot of hassle by never having to move furniture. When it’s time to move, you simply leave the big, heavy pieces of furniture behind.
7. Shorter Rental Ladder
Getting on the rental ladder is much easier than getting on the real estate ladder. This means that you can find and rent your dream home in a shorter time than it would take to buy it.
The key to climbing the rental ladder is to have a strong rental history.
With just a couple of rental referrals and a solid credit history, you can continue to secure great new homes to rent.
8. Fewer Risks
The property market is always changing. That could mean that the house you buy loses value. Depending on what type of house you buy and where, you may lose a lot of money on your home.
For example, you could be forced to sell at a time when the market is low and lose money on the deal. Or, you could be stuck with a house that stays on the market for too long, forcing you to lower the asking price.
Now, that is a waste of money.
As a renter, you don’t feel the effects of the rental market as directly as a homeowner can. While your rent may increase due to these valuations, you can also negotiate your rent to keep it lower.
Worst case scenario, if your landlord increases the rent, you can simply move to a new home.
There are other risks associated with owning a home. As a renter, your landlord is responsible for maintaining the property. However, if you buy a house, you’re on the hook for any issues that happen after the sale closes.
That means if the water heater goes out or you discover a leak in the roof, you’ll have to pay for those repairs directly.
Find and Rent Your Dream Home Easily
Renting isn’t a waste of money. It allows you to live freely, save more money, and get the best bang out of your buck.
However, the process to find and rent a place isn’t exactly straightforward. From arranging viewings to completing background checks, there are many hurdles to overcome.
That’s why we want to make the process as easy as possible for you with Brixbid’s revolutionary platform.
You can browse our latest listing of amazing Chicago apartments, find your favorite, arrange a viewing, make an offer, complete the background check, and sign the contract directly through Brixbid.
From browsing to signing, we’re here to help you. Try Brixbid for a smooth renting experience!