It is true that many consider being a homeowner part of the American dream. A white picket fence surrounding the yard and a home to make your own is very appealing to millions of Americans. However, being a renter can come with some pretty great benefits as well.
If you've ever dreamed of living in a high-rise apartment with a view of the ocean, it is generally much more affordable to do so with a rental instead of making a purchase. Depending on where you live and what type of home you are looking for, renting will often allow you to get more bang for buck - or at least a little more luxury.
When you acquire a home, there are a lot more assets to cover in insurance. When you rent a home, however, you only need to cover the amount of your belongings. Renters insurance can help cover the cost of your belongings if they are damaged from fire or weather or are stolen. In addition, most policies will offer some protection in liability coverage that isn't usually covered by a landlord if someone is injured at your home.
If you rent an apartment in a large building, there might be some additional perks like a communal gym, attached restaurant or a doorman. Building gyms frequently offer competitive rates for membership - plus you won't even have to go far to get in a workout. The added security of a doorman can also make you feel safer. Buildings that have some extra features can also be a great way to meet neighbors, socialize and hang out.
Depending on your landlord, some utilities might be included in your monthly rent. For a lot of renters, this makes a big difference in affordability, but also can simplify living. Instead of making several monthly payments for rent, the water bill and electricity, renters with utilities included may only need to make one timely payment. This can lessen the risk of forgetting to make a payment on time and receiving penalties as a result.
No yard maintenance
In general, it is the responsibility of the landlord to maintain the upkeep of the lawn and any landscaping around the building. Homeowners, on the other hand, have to do their yard work themselves or hire someone to do it for them. Either way, it is less costly and time consuming to rent when it comes to yard maintenance.
When you buy a home, there are a number of risks that are involved, including the responsibility of making mortgage payments. Mortgages are often the biggest expense for most homeowners, and falling behind could mean the loss of the property and ruined credit. Homeowners are often at the mercy of the housing market for mortgage rates and home equity. Renters don't have to make the same kind of investment or down payment on a home, and therefore have less risk.