What are the Perks of Renting | Could Renting Be for You?
You may have been influenced by the push from everyone around you to buy a house as soon as you can afford to. And whilst buying is undoubtedly a great option that we talk about elsewhere, renting isn’t to be completely brushed aside, either. And, what’s more, it may just be the best fit for you and your lifestyle.
What are the Advantages of Renting?
There’s a freedom to renting that sets it apart. Given the fact that most rental contracts are 12 months long, and many even start from 6 months, this allows you to change your setting each year if you wanted to. Why might you do that? Well, perhaps you’d like to be able to explore other parts of the city, or experiment with different apartments to find what suits you best.
Furthermore, by renting you can more easily adapt to the other changes in your life. For example, if you’re moving jobs, you don’t have to put up with a possibly new and inconvenient commute but instead move properties.
Or let’s say you went abroad for a year, you wouldn’t be tied down by your mortgage payments for a property you weren’t living in.
Moreover, buying and selling can be a slow process. And there are expenses around hiring solicitors for their assistance during the process. With a rental there also isn’t a large down payment to deal with. There will be a deposit but this usually doesn’t equal more than a month’s rent. A down payment, on the other hand, can be several thousands of pounds.
Lower Cost of Property
If you rent a property your monthly payments are going to be significantly more affordable than the buying price or mortgage rate, especially if it’s for a short period of time. What’s more, it’s very likely that the quality of home you get for what you pay will also be higher.
One of the biggest perks of renting is the lower monthly payments for a home. This is especially great for students or those at the beginning of their career.
If you live in a bustling city, you may have seen some of the staggering prices on properties for sale. A lot of the time, these high prices cause people to choose homes a little further out of town.
This isn’t to say that rent can’t also be expensive in the most sought-after locations but the difference between £1,000/month and putting down £500,000 can be huge.
It’s also very likely that the one bed and two bed flats in city centres come fully furnished, similar to student accommodation.
Rent and Budgeting
Renting a property can also encourage you to become a bit more organised in your finances or at least give you some peace of mind in that area. With a fixed rent, you can be confident with how much you’re paying at the end of each month, and depending on how your utility bills are set up with your landlord, in some cases you’ll know exactly what you’re paying for them each month too. Furthermore, if you live in a build-to-rent scheme you get super fast broadband included in the price.
Knowing exactly how much money is going where can alleviate stress and help you allocate your finances better each month. Moreover, when renting a property, costs you don’t have to worry about are things like maintenance. Let’s delve deeper.
Insurance and Repair Services
Renters aren’t responsible for any of the home maintenance or repair costs. Meaning that if you have any issues with your plumbing, or your radiators aren’t working, this is for the landlord to sort out. Now, this still means that renters are expected to maintain the cleanliness in their home and be respectful of the property and its neighbouring tenants. But, major repairs for things that you haven’t yourself broken are the landlord’s responsibility.
Half your Rental Costs
Rental properties are set up nicely for the option of flatsharing. This is where two or more people rent the same property together, each with their own bedroom but sharing public rooms like kitchens and living areas.
Why do this?
Flatsharing is generally cheaper than renting your own place, even if it’s a 1 bedroom flat. If you think about it, you still need a kitchen and bathroom in your apartment which add to the cost. By sharing with other tenants you divide the cost of these extra rooms.
A great benefit to this, as mentioned before, is that you now have another reason to live in a nicer place than you could initially afford because the price is split in two (or more).
Alongside the financial benefits, there’s also the social aspect of flatsharing – which can either be a huge positive or negative depending on the person. In a survey done by Spareroom, 58% of users said they chose a flatshare for both financial and social reasons.
If you’re wondering about your living options and trying to decide between renting and buying, this should give you some insight into the perks of renting.
Wanting to start travelling in the coming years? Or just want the freedom to explore different cities or countries? Renting could be the perfect option for you.
Or perhaps you’re simply not in a position to buy yet. Renting is a great alternative and offers its many benefits. It can take away a lot of the stresses and costs that come with owning a home such as utility bills.
Now perhaps you’re wondering what you need to consider before choosing to rent.
Disadvantages of Renting
Naturally, something that’s a huge selling point of renting can also be seen as a negative, depending on your situation. So why might a lack of permanence be a problem? Well, whilst you might be able to rent a home for years and years, you’ll never actually own it yourself. Problems that can come from this revolves around how much you want to decorate and customise your home. It’s unlikely that many rentals will allow to make significant changes to your home like new paintwork or any renovations.
In a similar vein, since the place technically isn’t yours, things like keeping pets depend on the landlord’s rules. It could be that they do allow pets but for an extra fee. Or, that they allow them but only smaller pets. This can be quite tricky for prospective tenants to navigate.
No Guarantee of a Fixed Price
Sadly, rent-stabilised apartments only exist in a select number of places. When it comes to most rental situations, within reason, your landlord can adjust the rent price, however they see fit. Moreover, this price can be affected by external factors such as changes in real estate, where your landlord realises the rent is below market value and decides to increase it. In some cases, this can result in a much higher rent than you started with.
You’re Relying on Your Landlord
Whilst being free from the financial burden of maintenance and repairs, you’re also relying on your landlord to fix any problems that arise. Hopefully, they’re a caring landlord who invests in high quality repair work so that the problem doesn’t arise again. However, it can also be the case that they want to spend little money or just be in no hurry to hire someone for the job.
At the end of the day, there are pros and cons to renting and it fully depends on what you’re looking for at this time. Furthermore, some of these cons may pose no problem at all if you find the right place or aren’t affected by them (not owning pets, for example).