Advantages and Challenges of Renting

While homeownership is a dream for many, renting a home can be a budget-friendly choice for a lot of people. When considering these two options, it’s important to weigh the advantages and challenges of continuing to rent.

Advantages include:

• Maintenance-free living
  Landlords may pay for utilities such as water, sewer, trash removal or hot water. When there is a maintenance issue, you can just call for assistance.
  
  
• Amenities
  Some rental communities provide amenities like swimming pools and fitness centers.
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• Lower costs
  In some cases, the cost of renting is less than paying a mortgage. To be approved for a lease, an application fee plus a security deposit is usually required.
  
  
• Flexibility
  Renting gives you the opportunity to experience different neighborhoods before buying a home, or easily relocate due to your job, family size or other life changes.
  
  
• Establishing credit
  If you’re looking to improve your credit, a good rental payment history can help you establish good credit, which can help you get a better interest rate when you’re ready to buy a home.

Challenges include:

• Limited privacy
  Sharing walls, floors or ceilings with neighbors can become a challenge.
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• Rent increases
  There is no guarantee that a lease will be renewed when it expires. In addition, your rent can increase over time. Renters do not gain equity like homeowners do.
  
  
• Less freedom
  Landlords may not allow certain things like having a pet, painting the walls or making other changes to your living space. The lease may also ask you to take care of things such as yardwork.

Learn more by signing up for our free renter education class.