A lot of people are against renting a property because they feel like it is simply throwing money down the drain. However, there are others who have no choice but to rent a flat or house. But, is renting really that bad? As is the case with most things in life, there are pros and cons associated with renting a property, which we will discuss in further detail below.
Pros of Renting a Property
One of the main benefits associated with renting a property is the flexibility that comes with this. If you are someone that often works abroad or switches from job to job, a rental property could be ideal. When you are faced with sudden changes, a permanent home is something that could get in the way. You do not need to make such a long-term commitment when you are renting a property.
Another pro of renting is that you can live in a property that you may not be able to afford otherwise. A lot of renters gain access to luxury apartments and houses because they only need to pay a monthly fee, rather than having to save for a deposit. This means that you can benefit from a higher quality of living without having to make a huge outlay.
It is also a lot easier to manage your money when you are renting. This is because you will pay a fixed sum every month. Aside from your bills, you won’t have any other home-related expenses to fund. If something breaks and repair and maintenance services are required, this is the landlord’s responsibility. So you don’t need to worry about having to unexpectedly pay for an electrician to come around or for a new boiler to be fitted. Such scenarios could set you back a substantial chunk of money, yet you are safeguarded from this by opting to rent instead. You also don’t need to pay property taxes, nor do you need to pay for building insurance.
Renting is also a viable solution for those who have a bad credit history. Of course, your options will be more limited. This is because most letting agencies do conduct credit checks today when determining whether a tenant is a good choice or not. Nevertheless, you do have the option of renting privately and some landlords will be happy to take on a tenant with a bad credit history. You may be required to put down a bigger deposit, or they may ask for you to pay six months rent upfront at a time, rather than paying on a monthly basis. Another option is to get a guarantor. Either way, you should be able to find a way around renting while trying to build your credit rating. Plus, by paying your rent off on time every month, you can go a long way to boosting your credit score. You may not have such success when trying to secure a mortgage. It can be almost impossible to get a mortgage if you have a bad credit rating. It is better to rent while you rectify your credit score, and then you can look for a property to buy afterwards.
Cons of Renting a Property
Now, let’s take a look at the disadvantages that are associated with renting a property instead of buying one. Of course, the main disadvantage is the fact that you are going to have nothing to show for your money. You will be making monthly payments towards something, yet you have no ownership. At the end of your tenancy, you would have spent ‘x’ amount of money, yet you will have nothing tangible to show for it. This is what puts most people off renting. Nevertheless, buying a house outright is a massive financial commitment, and so it’s not that easy. Figure out what works for your financial situation.
Another con to consider is the fact that there is a lack of security. You aren’t going to be kicked out of the house on a day’s notice. You have a contract, which needs to be adhered to. However, there is no guarantee that your landlord will want to renew your contract at the end of your tenancy, which could mean that you need to move to a new property. You also don’t have any control over annual rental fluctuations. It’s worth pointing out that mortgages can be subject to fluctuations too, though.
It is also vital to take into account the lack of freedom that comes with renting a property. You are not allowed to make any changes to the property without the landlord’s consent. Plus, a lot of landlords do not allow pets in their property. Every landlord is different; some don’t even allow you to hang pictures on the walls, others are much more laidback.
Another negative factor associated with renting a property is that you can feel a sense of loss when your tenancy comes to an end. If your contract is not renewable and you have built a life for yourself, it can be upsetting and frustrating when you need to start again and build a life elsewhere. This can be especially the case for families with young children.
As you can see, there are many pros and cons associated with renting a property. There is no right or wrong answer. It is all about determining what is right for you and your financial situation. Don’t give into pressure and feel like you need to buy a house simply because it is the ‘thing to do.’ You need to do what works for your situation.