The Pros to Renting

Businesswoman With House Model And KeysMany people look at renting as an unnecessary expense or assume they won’t save by renting. But, you would be surprised at how many financial benefits there are for renting. From the flexibility of the lifestyle to monetary savings, here are the top financial pros to renting.

Rent is Consistent

Your rental payment is something you add to your budget every month. While your rent might go up when you renew your lease, the rent usually sticks with the standard cost of living for the area. With homeownership, on the other hand, you have other expenses such as maintenance or repairs on your home that create an inconsistent monthly budget.

You Get Amenities

Apartment complexes often come with amenities that would cost quite a bit to add to your home or buy a home with them. For example, most apartments have a community center (that you can rent for parties too), a pool and even a gym. All of these things are included with your monthly rent, which means you aren’t paying any extra to enjoy them each month — while you would have to pay extra to enjoy these things if you lived in a house.

You Don’t Have to Worry About the Housing Market

The housing market is constantly changing. One minute a home’s value is up, the other minute it is back down. When you rent, you don’t have to worry about how the housing market is doing. Also, if you change jobs, go to a new school or have a new addition to your family you can upgrade the size of your apartment or townhome without having to worry about selling and dealing with real estate agents in the process.

Credit Scores Aren’t As Big of a Deal

While your credit score could affect you getting an apartment, those credit requirements are nowhere near as stingy as credit requirements for a home loan. So, if you have a little debt, it’s unlikely you’ll be denied your apartment — but you could be denied a home loan for a small load of debt.

Next time you find yourself thinking renting is the more expensive option, think again. You might be surprised at how much you would save renting an apartment versus buying your own home or condominium. Sure, you don’t own it, but that is also a financial benefit — because you don’t have to do all of the responsibilities that come along with owning a property.

May 2014