Did you know that one-third of America’s population are renters? According to RentCafé, that equates to 108.5 million people living in rental homes, apartments, and other properties around the country. And that number continues to rise.
When it comes to comparing the benefits of renting vs. buying, there are several strong factors in the “Pros” column. Lower upfront and long-term costs, freedom from ongoing maintenance and repairs, and the flexibility to move more easily are just three benefits. Read on to learn more.
Costs Are Lower Renting vs. Buying
Homeownership opens the door to a multitude of unexpected, long-term expenses such as property taxes, insurance, and regular maintenance costs, all of which can vary month to month. Renting, however, is a set rate every month. “A whopping 84% of renters said they believe renting is more affordable than owning—an all-time high for the survey,” says Julia Falcon for HousingWire.com. “For comparison, this number is up 17 percentage points from February 2018.”
From the moment you sign your lease, your upfront costs are lower when renting vs. buying. When buying a home with a mortgage, traditionally, a down payment is 20 percent of the home’s purchase price. Renters, however, only need to pay a security deposit, often equal to one month’s rent, which will be returned to you when you move out (provided you haven’t caused significant damage to the property).
Then there are the long-term costs to consider. Unlike homeowners, renters don’t pay property taxes, and renters insurance is much cheaper than homeowners insurance. On average, a rental insurance policy is $187 per year, while a homeowner’s insurance policy is around $1,083, according to ValuePenguin.
Someone Else Handles Maintenance and Repairs
Sadly, home repairs can’t all be prepped for, like that dishwasher that decides to quit or the water heater that starts leaking. When the unexpected happens, it’s a relief to know those repairs and replacements will be taken care of by someone directly responsible for managing repairs.
For example, at Sundial, we have friendly and well-trained staff who are certified to make all those unexpected repairs. Once you report that something in your apartment needs repair, our team sets to work, making sure your home stays safe and sound. So much easier than hiring a contractor or heading to the hardware store for parts.
Ready for a Change? Move When You’re Ready
One beauty of renting vs. buying is the freedom of living wherever you want. Did you get a new job in a neighboring town? You have more flexibility to move closer. Compared to a long-term, 30-year mortgage, a rental lease is relatively short. “Renters have the option to downsize to a more affordable living space at the end of their lease,” said Amanda C. Haury of Investopedia. “Although rents can be high in areas where home values are also high, renters can more readily find an affordable monthly payment than home buyers.”
While we hate to see you leave, at Sundial, we want to ensure you are taken care of wherever you go. That’s why we created our loyalty bonus: If you move from Sundial to another AMC property or vice versa, we’ll reward you with $250 to help you get settled.
With a difference in costs, less responsibility, and more freedom, it’s easy to see why more and more people are choosing to rent. We want to make coming home to Sundial the best part of your day. Come visit us and learn more about the benefits of renting.