Growing up, you were likely inundated with the idea of achieving the American Dream. Work hard and buy your own home—a two-step plan that seems pretty simple. The reality is, especially in today’s world, owning a home isn’t always a feasible feat, and in many cases not the right option for busy families. What are the benefits of renting vs buying? Here are four reasons why renting is better than buying a home for your family.
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4 Reasons Renting is Better Than Buying a Home
1. No Down Payment
If you do decide to purchase a home, you’ll be required to come up with a hefty sum before even putting an offer down on a home. Most home sales require a 20 percent down payment, and securing this money can be a difficult task. Small banks have tightened the reins on loans, and it can be extremely difficult to qualify for loans that in the past might have been easy to secure. In some geographical areas, the population is so saturated and the area so competitive that even finding a home to put an offer on can seem like an impossibility. In these markets, it’s almost always more advisable to rent instead of purchase.
2. Decrease the Number of Responsibilities
There’s talk that buying can be less expensive in today’s market, but those who rent find themselves responsible for a lot less, which can be a lucrative money saver in itself. Homeowners have a variety of repairs and maintenance to deal with on a normal basis. From yard work to plumbing issues, the list of expenses is never ending. When it comes to renting, the only monetary responsibility you have is to pay your rent check and handle your utilities, which in some situations are included in the rent to begin with. The rest of the responsibilities stop at your wallet. Should something break or need maintenance, your landlord or property management company is required by law in most states to fix it for you within a timely period.
3. Finding the Right Fit
Don’t jump on the first rental you check out. Landing yourself in a terrible situation with a less-than-sensational landlord is a surefire way to dig yourself into trouble. You can make your rental feel like home with the right home décor pieces from a store like World Market and a solid relationship with your landlord, but there is the caveat of finding the perfect fit for your family.
When you’re searching for an apartment, always use the utmost in caution, especially when it comes to handing out sensitive, personal information. Landlords will ask to screen you (if they don’t, beware of a scam), and they will ask for your social security number and/or proof of money in your bank accounts. It feels invasive because it is, but it’s essential for most reliable landlords to ensure you are who you say you are and you’ll pay what you promise. That being said, there’s no reason to throw yourself into the path of scammers by throwing your SSN around without a care. Always request a potential landlord use a genuine tenant screening service like SmartMove. That way, you can provide the information requested but keep yourself and your family safe—a sentiment we can all get behind.
4. Make Upsizing Easier
Perhaps your family is still growing, and you intend on having more children in future years. Putting down roots in a home might not be the smartest choice, especially in the event that a growing family needs to upsize. Renting allows for flexibility that a 30-year mortgage simply won’t. Consider trying to sell a home: dealing with wishy washy buyers, closing costs, and the like. Now consider moving after renting: give the landlord 30 days’ notice, pack up, and move out. The simplicity and potential for transience makes renting a great choice for families who might be considering more children in future years.
If you’ve been considering your options when it comes to renting versus buying, all signs in today’s current market point to renting. For ease, flexibility, and simplicity, many families are finding the benefits of renting a home far outweigh the ideals of purchasing a house. Consider what’s best for your family with these facets in mind.
Family makes a home, not a house. Home is where the heart is.