Making the Decision to Rent vs. Buy
There are 108.5 million renters in the country. That’s more than one-third of America’s population that lives in rental homes, apartments, or other properties. And that number continues to increase as more people choose to rent vs. buy.
Reasons to rent are varied, as an increasing number of people discover the benefits of renting. Some of those people admit they don’t ever want to switch to owning! As it turns out, renting is less expensive than buying and comes with more freedom and fewer maintenance and repair responsibilities. Keep reading to learn more.
Pay Fewer Upfront and Long-Term Costs When You Rent vs. Buy
When you’re a homeowner, unexpected costs and fees like home repairs, insurance, taxes, and more add up every year and can vary month to month. Renters, however, know exactly what their monthly costs will be. That stability could be why 82 percent of renters in 2019 said renting is more affordable than owning. That number was an increase from 67 percent just a year before.
From the moment you sign your lease, your upfront costs are lower. 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).
Don’t forget to consider the long-term costs, too. Unlike homeowners, renters don’t pay property taxes, and renters insurance is much cheaper than homeowner’s insurance. On average , a rental insurance policy is $187 per year while a homeowners insurance policy is around $1,083.
Renters Don’t Worry about Maintenance or Repairs
We all know that life can come at you fast, like in the form of a baseball crashing through a bedroom window. When unexpected repairs or maintenance are needed, it’s a relief to know that everything will be taken care of by your landlord— someone who is responsible for making repairs.
At The Circle, for example, we have knowledgeable and friendly staff who are trained and certified to make repairs. Such a relief to know you don’t have to hire a handyman or head over to the hardware store, right?
Renters Can Move without Reservation
One of the best benefits when you rent vs. buy is the freedom to live wherever you want. Unlike a mortgage, which can tie you down for some 30-odd years, a lease is relatively short. “Regardless of age, mobility is one of the top reasons people decide to rent,” writes Robert Pinnegar at The Washington Post . “For millennials just entering the workforce or in the process of building their careers, the ability to relocate is a major factor. Even if they are in a financial position to purchase a home, millennials may choose to rent to have the flexibility to take advantage of new job opportunities as they arise.”
We always hate to say goodbye to our Circle residents, but we do want to be sure that you are taken care of wherever you will next call home. It is that belief that led to our loyalty bonus program: If you move from The Circle to another AMC property or vice versa, we’ll give you $250 as a housewarming gift.
When sitting down to weigh out your options of whether to rent vs. buy, keep in mind that renting is less expensive than buying, comes with fewer maintenance and repair responsibilities, and offers you more freedom. At The Circle, we always hope to make coming home the best part of your day. If you want to learn more, come visit and explore even more benefits of renting.
