Why might people choose to rent a home rather than buy a home?
- They have a long-term commitment to the area.
- They have a lot of money saved for a down payment.
- The property maintenance is the owner’s responsibility.
- The interest rates on equity are too high.
Answer: People might choose to rent a home rather than buy a home because the property maintenance is the owner’s responsibility (Option C).
Owning a home gets advertised as part of the “American Dream,” but the folks advertising home ownership tend to leave out the difficult parts, such as taking care of any and all property maintenance. Not bearing this responsibility, among other reasons, remains part why the question of renting versus buying exists as a choice and not an inherent path.
Most Common Reasons Some People Choose to Rent a Home Rather Than Buy a Home
In today’s economic climate, many people find themselves choosing to rent rather than buy a home. While homeownership is often seen as a cornerstone of the American Dream, there are several practical reasons why renting might be the better option for some individuals.
More Location Flexibility
So long as they pay their bills on time, renters can expect to live in their space for a previously agreed upon amount of time, likely a year or six months. As a result, renters have more flexibility on where to live for the short-term future. While someone who bought a house must go to that process again from the seller side- not to mention finding another place to live and deciding all over again whether to buy or rent- a renter can simply choose a new place to rent in lieu of renewing their lease, allowing them to move closer as their needs dictate, such as a person moving into a neighborhood or complex closer to their job. Flexibility extends to the financial side as well- monthly rent (and the other costs landlords don’t advertise) likely costs less than the price of buying a house.
No Down Payment
Speaking of costs, renters generally don’t have to make a down payment. While they usually do face an overpriced security deposit, renters sign a much smaller check than someone looking to own their home. According to a fact-checked article on investopedia.com, a down payment lies “ideally around 20% of the property’s value,” likely a significantly higher number than a security deposit, which tends to fall at a month’s rent, maybe less. Don’t forget that buying also involves a mortgage to pay off before claiming full ownership of the home; a homeowner might not pay off their mortgage in the time a renter completes their lease, depending on their financial situation.
The Property Maintenance is the Owner’s Responsibility.
If we’re talking about lowering costs, then cross maintenance off the worry list. Officially, part of a landlord’s job involves maintaining the property and ensuring all appliances continue to do their jobs. (Do bear in mind that plenty of landlords will try to dodge this responsibility at every turn- do not let them.) Sink dripping? Call the landlord. They might have a specific company they keep on call,, without charging extra for each job and instead adding a fee to the monthly rent to cover their services for everyone who rents a house or apartment from them. At the end of the day- or rather, the lease- the renter assumes none of the repair responsibilities a homeowner does when an appliance needs fixing.
